Oct 23, 2019

Tesla returns to the spotlight as Q3 earnings loom

Photo: Beata Zawrzel/NurPhoto via Getty Images

Tesla, struggling to turn the corner to profitability, will report its Q3 earnings after markets close Wednesday.

The big picture: Delivering more cars — and the electric carmaker already announced a record quarter on that front — isn't yet a recipe for financial health, especially as the lower margin Model 3, the best-selling EV in the U.S., is increasingly its dominant product.

Flashback: Tesla reported a net loss of $408 million in Q2. CEO Elon Musk said at the time that he expects to be "around breakeven" in Q3 and profitable in Q4.

Where it stands: Per MarketWatch, analysts polled by FactSet predict an adjusted loss of 46 cents per share. And they also report that for "the first time in more than a decade, Tesla is looking at a year-over-year dip in quarterly revenue."

What we're watching: Beyond the numbers, Tesla-watchers will have an ear out for updates on vehicles still in development, including the semi-truck and the Model Y crossover slated for production next year.

  • "The company will also likely provide an update on whether the pickup truck is still expected to launch next month, following a series of delays," CNBC reports.
  • Tesla's expansion into China, the world's biggest auto market, will also be in focus. "Tesla ... is conducting trial production runs at its new $2 billion China factory for the past several weeks and will sell some of the first cars from the plant to its employees," Reuters reported Wednesday morning.

Go deeper

Tesla's global aspirations are dividing the markets

Data: Investing.com; Chart: Axios Visuals

Tesla’s third-quarter revenue fell by $2 billion, or almost 40%, in the U.S., a regulatory filing released Tuesday showed, the company's first drop in more than two years.

Worth noting: However, sales outside the U.S. jumped, with China sales growing 64% to $669 million.

Go deeperArrowOct 30, 2019

Tesla's good third-quarter earnings don't excuse its challenging future

Photo: Smith Collection/Gado/Contributor/Getty Images

Tesla had a good night, and now the question is whether it's a new day for the pioneering but volatile automaker that kicked off the push to move electric vehicles toward the mainstream.

Driving the news: Tesla surprised Wall Street with a $143 million third-quarter profit on Wednesday evening, and announced plans to ramp up vehicle production at its China factory sooner than expected.

Go deeperArrowOct 24, 2019

Elon Musk announces new Tesla factory in Germany

Photo: Yichuan Cao/NurPhoto via Getty Images

Tesla CEO Elon Musk announced Tuesday that the electric automaker's planned European factory will be located near Berlin, Germany.

Driving the news: It marks the Silicon Valley electric automaker's second international plant, joining a recently launched facility in China.

Go deeperArrowNov 13, 2019