Oct 19, 2022 - Energy & Environment

Tesla to report Q3 earnings after markets close

Data: Company earnings reports; Chart: Erin Davis/Axios Visuals

Here are a few things on our radar when Tesla, the world's largest seller of electric cars, reports Q3 earnings Wednesday after markets close and CEO Elon Musk briefs analysts.

The big picture: Tesla's now consistently profitable. But there's tumult surrounding Tesla — including Musk's Twitter purchase drama — and the stock is down 36% over six months.

  • Wedbush Securities' Dan Ives, in a note, cited hurdles ranging from logistical challenges in China to growing EV market competition.
  • Investors are "starting to worry that the bloom is coming off the rose."

What we're watching: The raw numbers, but also...

Products: Musk said on Oct. 6 that Tesla's long-delayed semi-truck is starting production and PepsiCo will get the first deliveries Dec. 1. But he offered nothing on future volumes and timelines.

  • We're also wondering about the delayed "Cybertruck" pickup and plans for new battery factories.

Headwinds: Tesla delivered a record 343,830 electric cars worldwide in Q2, but that missed Wall Street expectations.

  • Inflation, Europe's high energy bills and signs of China's market slowdown have "raised doubts...about whether Tesla can buck an economic slowdown and continue to raise prices without hurting its sales," Reuters reports.

Climate law impact: Tonight's call is the first since enactment of the law that expanded consumer purchase subsidies, but ties them to complicated sourcing requirements.

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