FMP

FMP

Enter

Wolfe Research on Tesla's Upcoming Q3 Deliveries

-

twitterlinkedinfacebook
blog post cover photo

Image credit: FMP

Tesla (NASDAQ:TSLA) is projected to deliver around 460,000 vehicles in Q3, according to Wolfe Research, aligning closely with market expectations and representing a 6% year-over-year increase and 4% growth from Q2. This figure is also in line with the consensus estimate of 461,000 deliveries.

Wolfe Research noted a flat delivery performance in North America, while record-breaking deliveries of 172,000 vehicles in China are expected to compensate for lower volumes in Europe. However, despite steady delivery numbers, the firm expressed concerns about Tesla’s profitability.

In Q2, Tesla's auto gross margins, excluding credits, fell to 14.6% due to price cuts on the Model Y that outpaced cost reductions. For Q3, Tesla introduced additional incentives, particularly in the U.S., potentially leading to a pricing headwind of $4,500 per vehicle. Wolfe Research estimates this could lower global revenue per unit by $550, with total price reductions averaging $1,000 per vehicle.

Despite these pricing pressures, Tesla’s ongoing cost reductions are expected to mitigate some of the impact. The company has been lowering its cost of goods sold (COGS) by $800-$900 per vehicle each quarter since late 2022. Wolfe Research anticipates that Tesla’s gross margins may see a slight improvement, rising to 15.2% in Q3, helped by fewer losses from the Cybertruck and deferred revenue recognition. Looking forward, Tesla's upcoming Robotaxi event on October 10 is seen as a potential near-term catalyst for the stock. Additionally, the firm expects the launch of Tesla's lower-cost model in early 2025 to alleviate pricing pressures and maximize production capacity.

Other Blogs

May 14, 2024 11:41 AM - Sanzhi Kobzhan

The easiest way to calculate stock’s target price and why the target price is important.

A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...

blog post title

May 16, 2024 8:06 PM - Gordon Thompson

Deutsche Bank Upgrades AST SpaceMobile to Buy Amid Legal Challenges

On Thursday, May 16, 2024, Deutsche Bank upgraded its rating on NASDAQ:ASTS to Buy, maintaining a hold position. At the time of the announcement, ASTS was trading at $4.03. This decision was accompanied by an increase in the price target for AST SpaceMobile, raised to $22 from $19, as detailed in a ...

blog post title

May 24, 2024 9:30 AM - Rajnish Katharotiya

How to Access and Analyze Earnings Call Transcripts

Earnings call transcripts are invaluable resources for investors, analysts, and financial enthusiasts. They provide insights into a company's performance, strategy, and future outlook, making them essential for making informed investment decisions. With Financial Modeling Prep, Earnings Call Transcr...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep