Tesla Q1 Earnings Preview: Analysts Anticipate Revenue Dip, Focus on Growth and Demand

Revenue and Earnings Expectations

Analysts forecast Tesla to report first-quarter revenue of $22.34 billion, marking a slight decline from the $23.33 billion reported in the same quarter last year. However, Tesla has exceeded revenue estimates in three out of the past five quarters.

Earnings per share (EPS) is anticipated to be 51 cents, lower than the 85 cents reported a year ago. Tesla has a mixed record in meeting EPS estimates, beating analysts twice and missing twice in the last five quarters.

Analyst Perspectives

Bank of America analyst John Murphy highlights concerns about weakening electric vehicle (EV) fundamentals and investor sentiment. The focus for investors will be on demand and Tesla’s plans for future growth.

Wedbush analyst Daniel Ives emphasizes the significance of the conference call and commentary on Tuesday, which could significantly impact Tesla’s stock performance. Ives believes that without a clear growth strategy, Tesla’s stock may face challenges in the future.

Key Factors to Monitor

Demand:

Tesla’s recent price cuts will be a key indicator of customer demand.

Production and Deliveries:

The company reported declines in deliveries and production in the first quarter, falling below analysts’ expectations.

Model 2 Launch:

Investors will anticipate updates on the development and launch timeline for the next-generation Model 2 vehicle.

Robotaxi and AI:

Hints of advancements in Tesla’s robotaxi initiative and artificial intelligence initiatives will be closely watched.

Cybertruck and Layoffs:

Updates on the Cybertruck’s sales performance and the impact of recent layoffs on the company’s operations will be of interest to investors.