The electric vehicle giant, Tesla Inc (TSLA), is gearing up to unveil its third-quarter financial results after market close on Wednesday. All eyes will be on CEO Elon Musk as he is expected to provide crucial insights into the company’s strategy, future plans, and performance in a dynamic market.
Wedbush analyst Daniel Ives, who holds an Outperform rating on Tesla with a $300 price target, believes the earnings call will be a hotbed for updates on several key areas, including the highly anticipated Cybercab, the overall electric vehicle demand environment, and the long-awaited sub-$30k vehicle.
Ives anticipates Musk will address the demand outlook for the fourth quarter of 2024 and the upcoming year, 2025. While the recent Robotaxi Day event left investors wanting more information on Tesla’s autonomous driving and AI strategy, Ives believes Musk will shed light on the company’s FSD and Cybercab strategy during the earnings call.
The sub-$30k vehicle, which is expected to launch in mid-2025, was not discussed at the Robotaxi Day event. However, Ives believes the earnings call will be the perfect opportunity for Tesla to highlight this crucial vehicle, which could potentially revolutionize the company’s market reach.
Beyond the Cybercab and the sub-$30k vehicle, analysts will be keenly observing Tesla’s overall performance. Ives expects the company’s Q3 headline numbers to be generally in line with expectations, with the potential for slight upside on the margins front.
The 1.8 million unit estimate for 2024 deliveries remains achievable, as Tesla’s September quarterly delivery report aligned with expectations. Moving forward, Tesla’s focus will shift towards achieving 2 million or more deliveries in 2025.
Margin performance will be a key focal point for analysts. The market is looking for improvement in this area, aiming for margins to reach the high teens in Q3 and Q4 to demonstrate that the company has navigated through the price cuts and is poised for better days ahead in 2025.
In addition to the aforementioned, Ives expects Tesla to highlight its strength in the Chinese market and its evolving AI strategy as key elements in the bullish Tesla narrative.
As Tesla prepares to unveil its Q3 results, investors and analysts alike are anticipating a detailed roadmap of the company’s future direction, including its ambitious plans for the Cybercab, the sub-$30k vehicle, and its overarching strategy to navigate a rapidly evolving automotive landscape.