Tesla (TSLA) is set to report fourth-quarter results late Wednesday, with investors likely to focus on Elon Musk’s 2023 guidance and targets for the EV giant. Tesla stock was down early Wednesday.
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After a terrible 2022, in which Tesla shares plummeted in December, shares fell again in early 2023. However, Tesla has rebounded since its big vehicle price cuts in China were announced on Jan. 6. Analysts and investors will be watching the results closely on Wednesday to get a better idea of what Tesla expects for 2o23.
Tesla shares fell 1% in premarket trading. TSLA shares pared early losses on Tuesday, up 0.1% by the close. Shares rose 7.7% to 143.75 on Monday after rising 4.9% on Friday.
Tesla Earnings
Estimates: Analysts are expecting earnings to jump 33% to $1.13 per share for the fourth quarter. At the end of December 2022, analysts had forecast earnings per share of $1.25. Currently, analysts set the revenue target for 39% growth to $24.67 billion.
Merits: Check Wednesday after market close.
Tesla previously announced that its fourth-quarter deliveries hit a record 405,278. As a result, the lowered forecasts were missed despite aggressive year-end stimulus. Vehicle deliveries were up 31% year over year and nearly 18% from the 343,830 in the third quarter. Deliveries also rose 40% to 1,313,851 in 2022. That was well below the company’s 50% growth target.
Analysts had expected Tesla deliveries of around 420,000 in Q4, down significantly from higher estimates. Tesla’s Q3 deliveries had also fallen short.
Tesla production was 439,701 in the fourth quarter, exceeding deliveries by more than 34,000. In Q3, production exceeded sales by a little over 22,000. Tesla production was 439,701 in the fourth quarter, exceeding deliveries by more than 34,000. In Q3, production exceeded sales by a little over 22,000.
With production ramping up at the company’s Berlin and Austin, Texas plants, Tesla’s total production capacity is now well over 450,000 per quarter.
Tesla unit sales for 2022 totaled 1,313,851, up 40% from 2021 but below the 50% target. The Model 3 sedan and Model Y crossover accounted for the majority of sales. The remainder came from the high-end Model S and X vehicles.
Meanwhile, the Cybertruck is slated to launch in 2023, Tesla’s first new model since the Model Y launched in early 2020. The often-delayed truck will begin “early production” by mid-year, according to Musk. Other reports state that the Cybertruck will start mass production in late 2023.
Tesla also began shipping its long-haul semi-trucks PepsiCo (PEP) in December. It’s unclear how many tractor units will be produced in 2023, with key prices and specifications still unclear. Tesla plans to build a $3.5 billion semi-trailer truck manufacturing facility in northern Nevada, according to the Nevada Independent.
Tesla stock gains come after price cuts
Tesla’s Q4 results follow China’s jump in EV registrations for the week of Jan. 5-16 following recent big price cuts. The latest registration numbers seem to reflect some benefits of Tesla’s Jan. 6 decision to cut prices in China.
Tesla cut prices for the Model 3 and Y in China, with the base Model 3 dropping more than 13% to $33,570. According to CnEVPost, local media reports in China suggest that Tesla received 30,000 orders within three days of the announced cuts.
Tesla has also announced price cuts in the US and Europe. This will make more models eligible for $7,500 tax incentives under the Inflation Reduction Act (IRA).
The EV giant has slashed prices on the US Model 3 by 6% to 14%, depending on trim level. A standard trim Model 3 RWD was cut $3,000 to $43,990. With the IRA tax credit applied to the vehicle, consumers who meet income limits would pay $36,240.
The Performance Model 3’s fairing was cut $9,000 to $53,990, falling below the $55,000 limit for tax credits. Meanwhile, Tesla’s base Model Y was slashed by $13,000, or nearly 20%, to $52,990, also under the tax credit limit. The Performance variant for this vehicle has been reduced to $56,990, also down $13,000.
Tesla stock
TSLA shares rallied after two losing sessions on Friday and Monday. Tesla shares fell Tuesday afternoon, meeting resistance at the stock’s 10-week moving average.
Tesla stock is up 16% from a low of 101.81 on Jan. 6. A number of analysts have also rated Tesla stock and lowered price targets.
TSLA shares rank third in the automaker industry group. Tesla stock has a composite rating of 42 out of 99. The stock has a relative strength rating of 5, an IBD Stock Checkup exclusive gauge of stock price movements. The EPS rating is 75.
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