Is the electric giant Tesla no longer a "growth stock"? Tesla Q1 Earnings Preview Wary Analysts Seek Clarification Regarding Robotaxis, Model 2
Leading electric car manufacturer Tesla Inc. (NASDAQ:TSLA)
releases its first-quarter financial results on Tuesday, April 23, following
market close.
The main earnings projections, analyst commentary, and issues to keep an eye on
are listed below.
Earnings Estimates: Based on information from Benzinga Pro, analysts
anticipate that Tesla will announce first-quarter sales of $22.34 billion. For
the first quarter of the previous year, the corporation brought in $23.33
billion in sales.
In three out of the previous five quarters, Tesla has
exceeded analyst sales projections.
Compared to the 85 cents recorded in the first quarter of last year, analysts
anticipate that Tesla will announce first-quarter earnings per share of 51
cents. In the last five quarters, Tesla has twice exceeded, twice fallen short
of, and once even of analysts' earnings per share projections.
In the last two quarters, Tesla's revenue and earnings per share fell short of
analyst projections.
According to the company's fourth-quarter financial reports,
it is in between growth waves.
"In 2024, our vehicle growth rate may be notably lower than the growth
rate achieved in 2023," the business stated.
What Analysts Are Saying:
According to Bank of America analyst John Murphy in a recent investor
note, Tesla had a number of well-known problems that would affect the first
quarter earnings results.
"TSLA stock has been under material pressure due to both weaker EV
fundamentals and sentiment around the electrification theme," Murphy
stated.
The analyst's rating on Tesla was Neutral, with a $220 price target.
Murphy stated that investors will be concentrating on
Tesla's future growth strategies and demand.
"Despite near-term pressures, the unveiling of future growth drivers has
the potential to support the stock."
Murphy mentioned Robotaxis and Model 2 as growth products that might be
sufficient to maintain the stock. Given that management prefers to separate
product announcements from financial results, the analyst didn't anticipate any
significant announcements on Tuesday.
"However, we believe the company may provide some hints
on the Robotaxi event currently scheduled for August 8 and may also reiterate
its intention to launch the Model 2 in 2025/2026."
According to Murphy, investors were concerned about the "growth
implications for what is viewed to be a 'growth' stock" and that Tesla's
new flows were weighing on the stock.
The first quarter conference call and commentary, according
to Wedbush analyst Daniel Ives, could have a significant influence on the
market since it will be the "moment of truth" for Tesla and CEO
Elon Musk.