Tesla: Can Q3 Earnings Spark a Rebound After Recent Setbacks?

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) is scheduled to deliver its Q3 2024 earnings after market close ). Throughout the year, Tesla failed to exceed earnings per share estimates, with the last one in Q2 having delivered a negative 8.7% surprise at $0.42 reported vs $0.46 EPS estimated.

In turn, Tesla would no longer be just a luxury EV company, but one that has recurring cash flows from the robotaxi service. Such a transition would propel TSLA's valuation to the roof. Elon Musk nailed it to around $5 trillion market cap, which would be 624% up from the present market cap of $690.5 billion.

Hinting at more technical issues with Tesla’s FSD, CNEVPOST recently reported more delays for FSD launch in China, beyond the expected Q1 2025. Moreover, even if both conditions are satisfied – FSD and regulatory approval – Tesla would have to make the vehicle affordable as the primary requirement. According to FactSet, analyst consensus points to just a slight gross margin improvement , at 14.7% vs 14.6% in Q2.On Monday, Wedbush Securities analyst Dan Ives noted that Musk’s outlook for Q4 and 2025 will likely play a bigger role than Q3 figures themselves. For the upcoming quarter, Ives expects “some slight upside likely on the margins front showing a bottoming on this key metric.”

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