Tesla TSLA earnings Q3 2021

Tesla experiences third-quarter outcomes on Wednesday after the bell.

This is what analysts expect:

• Earnings per share (adjusted): $1.59 anticipated per Refinitiv
• Income: $13.63 billion anticipated per Refinitiv

The corporate beforehand reported deliveries of 241,300 electrical automobiles and manufacturing of 237,823 automobiles throughout the interval ending September 30, 2021.

In contrast to different automakers, Tesla’s gross sales rose throughout the quarter, setting a brand new firm file, regardless of chip shortages and provide chain challenges weighing on the trade. (Deliveries are the closest approximation of gross sales that Tesla experiences.)

Final quarter, CEO Elon Musk mentioned he would not lead earnings calls by default. He might select to not deal with shareholders and analysts on Wednesday, which might certainly disappoint his followers.

Buyers submitted inquiries to Say Applied sciences, a website Tesla makes use of to ballot shareholders forward of earnings calls, searching for updates on the now-delayed Cybertruck, Tesla’s 4680 battery cells, and whether or not a $25,000 electrical automotive, which Musk teased final 12 months, remains to be underway.

Tesla’s technique for weathering provide chain points will even be in focus, together with the corporate’s ongoing investments in and gross sales of cryptocurrency and regulatory credit.

Forward of the report, Financial institution of America raised its worth goal for Tesla shares increased to $900 per share from $800.

BofA analysis analyst John Murphy, in a observe to traders on Tuesday, laid out draw back dangers and upside potential for Tesla. Enhancing battery tech could possibly be a boon for the corporate, he prompt, but when higher battery cells do not come about as quickly as hoped, that might sluggish Tesla’s roll. Competitors from incumbent automakers can be rising, he famous. Lack of administration, a perpetual threat, may trigger share costs to say no, too.

BofA raised its worth goal as a result of Tesla has a “observe file of development, constant capital raises, and general investor hype.” Tesla may additionally doubtlessly profit from will increase in federal or state incentives, rising gasoline costs, higher execution and price containment, and profit from quick sellers overlaying their positions.

Loup Ventures’ Gene Munster, who can be bullish Tesla, instructed CNBC forward of the Q3 report that whereas competitors in battery electrical automobiles is constructing, he believes Tesla will nonetheless acquire market share within the broader automotive market.

“It is a easy equation to remain forward of the entire upcoming competitors, promote at scale the most effective worth EV. That could be a mixture of design, vary, superior driving options and shopping for expertise,” he mentioned.

In accordance with the most recent numbers from Alix Companions, electrical automobiles together with absolutely battery electrical vehicles like Tesla’s are on a path to comprise 28% of all new gentle industrial and passenger automotive gross sales worldwide by 2030.

The Biden administration is focusing on a 50% general discount in greenhouse fuel emissions by the US by 2030.

In accordance with a 2021 examine by Widespread Power Labs, the transportation sector is the only largest driver of greenhouse fuel emissions within the US immediately, representing about 28% of complete emissions. The vast majority of transportation emissions derive from passenger automobiles, light- and medium-duty vans. No vital discount in greenhouse fuel emissions will be achieved within the US with out each electrifying these automobiles, and shifting the facility sector off of fossil fuels.

It is a growing story. Examine again for updates.

— CNBC’s Michael Wayland contributed reporting.