Oct 20, 2021 - Economy

Telsa on track for strong Q3 earnings report following record deliveries

Tesla net income
Data: FactSet and company release; Chart: Will Chase/Axios

Tesla is likely on track for another strong earnings report after logging record deliveries as the company appears to be weathering the storm of the global chip shortage.

What's next: The electric automaker will report third-quarter earnings this evening after markets close.

  • Wedbush Securities analyst Dan Ives, in a note, said the company is expected to beat revenue and earnings per share estimates.

The intrigue: A Barclay's note ahead of the report says Tesla has been able to handle the chip shortage better than legacy automakers for several reasons.

  • One is that Tesla predominantly sells just two vehicles (Model 3 and Model Y), not dozens, so "the problem of locating chips is more focused."
  • But automakers face multiple supply chain problems and Tesla isn't immune — a topic sure to surface on their earnings call.

What we're watching: Reuters notes investors will be seeking information about how Tesla's faring in China, where it has seen robust sales but faces "negative publicity and a host of new domestic competitors."

What we don't know: That's whether CEO Elon Musk will be on this evening's call with analysts after saying on the Q2 call that he'd no longer be a regular.

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