Tesla earnings preview: Demand in focus for EV maker
Yahoo Finance's Pras Subramanian explains what to watch for when Tesla reports earnings.
Video Transcript
- All right. Tesla earnings are out after the close today. Yahoo Finance senior auto correspondent Pras Subramanian has a preview. Surprise, I'm guessing. Tesla's going to beat by $0.10. Stocks going higher. Right?
PRAS SUBRAMANIAN: I admit the bulls want that. But yeah, you know, I think it's going to be all about the delivering-- I'm sorry, the demand and production sort of outlook and story there.
Big headline numbers here. We're looking at about 22.13 billion, will be its highest ever quarterly record. Unadjusted EPS of $1.02. GAAP net income of $3.2 billion. That would be near an all time high.
So a big quarter for them in the books. But we're all watching, can they hit that 1.4 million 2022 annual production kind of delivery outlook. They'd have to make 500,000 vehicles in Q4 which is possible but the question is, is there demand.
There's concern about demand slowing in China and things like that. But other things we're going to watch, for me personally, I'm going to watch about these Tesla semi outlook. Are they going to able to hit that December 1st delivery with Pepsi? And what's coming up for that in 2023?
And then also what's happening with the cybertruck? Is that still on track for mid next year?
And so it's all about where we're also going to hear capacity being brought online at some of the new factories, whether that's Austin or Berlin. What do we expect there? And how many vehicles are they going to continue to produce at these factories?
PRAS SUBRAMANIAN: So last quarter, they said that Fremont was about 450,000 vehicles a year. Shanghai, they say 850,000 vehicles a year install capacity. So that's already 1.3.
The rest, Austin, Giga, Berlin, you get a couple hundred thousand from each of those. They're still ramping up. So maybe you're at 1.5, 1.7, give or take. I think that's what they're looking for.
But they're going to have to hit about 2 million in 2023 to hit that 50% compound annual growth rate. So there's a long way to go. But the question also is how can they keep raising prices for their cars, and then also in this slowing global macro environment, are those sales going to come down, potentially?
- Did we talk about Musk being on the call yet? Did we talk about that? We didn't talk--
- He's going to be on the call.
- Yeah, he's going to be on the call, which he hasn't been on the calls recently. And you have to wonder, the whole Twitter thing is still going on. But he hasn't really gotten a lot of questions directly about that. So you wonder, are Tesla analysts going to ask about that? I don't know.
- They're scared. They're scared. They're going to get tossed right off the call.
- I was going to say. Yeah.
PRAS SUBRAMANIAN: They posted a couple of the top institutional questions that they did on their, they poll a SurveyMonkey kind of thing and also their top retail investor questions. I didn't see any on what is Musk going to do with Twitter, et cetera, on there.
They'll probably ask about stock sales. But I didn't see anything about his role on Twitter as of yet.
- I don't get that. Yeah. I found that confusing.
- We'll see how much of his time goes there. Pras, thanks so much. We know you're going to be tracking this after the close, very closely.
