Tesla Earnings Are Coming. What to Expect.

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Third-quarter earnings for the electric-vehicle maker are coming Wednesday evening. There will be a lot to digest.

Tesla will report third-quarter earnings on Wednesday evening. There will be a lot for observers to digest, but they should focus on pricing, profit margins, and products.

The delivery number hasn’t hurt the stock much. Coming into Tuesday trading, since Tesla reported third-quarter deliveries, shares are up 1.5%, while the Nasdaq Composite had gained 2.6%. Margins are expected to range from 17% to 18% in the third quarter. Wells Fargo analyst Colin Langan is a little more bearish, projecting about 16%. He rates Tesla stock at Hold with a $260 price target.

One way Tesla margins can bottom is to end price cuts. Another is new products. Tesla is due to start delivering the Cybertruck any day now. The more expensive versions should be delivered first. The pace of production and deliveries will be closely watched by investors.

 

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