Homepage / Technology / Here's what to expect from Tesla's earnings report
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Technology

Here's what to expect from Tesla's earnings report

Tesla is expected to release its second-quarter earnings report after the market closes on Wednesday, days after it delivered its first batch of highly anticipated Model 3 sedans.

Here is what analysts expect:

  • Adjusted loss per share: $1.82 expected, according to a Thomson Reuters survey
  • Revenue: $2.51 billion, expected, analysts told Thomson Reuters

Analysts expect Tesla to report a second-quarter loss of $1.82 per share on $2.51 billion in revenue, according to estimates from Thomson Reuters.

Reservations for the Model 3, which starts at $35,000, have grown to more than 500,000, up from the 373,000 the company reported in the spring of 2016. That is more than the total annual sales of any entry level luxury car, said Bernstein analyst Toni Sacconaghi in a note sent Monday.

Yet, analysts still have concerns over whether Tesla can make the cars fast enough, keep the Model 3 from eating into sales of its higher-end cars, and fend off eventual competition from experienced competitors.

At a company event on Friday, Tesla CEO Elon Musk said Tesla will be in “production hell” for the next six months or longer as it ramps up Model 3 production. Even with that, customers who order a Model 3 now will likely not receive it until the end of 2018, he added.

“CEO Elon Musk sounds increasingly squeamish about the production ramp,” Sacconaghi said in his note.

Similarly, Baird analyst Ben Kallo said in a note sent Monday that though Tesla aims to produce 500,000 vehicles in 2018, “we continue to be conservative in our estimates (we model 310k total vehicles).”

And there are questions about whether the Model 3 will cut into sales of the the higher-end Model S, which could put pressure on Tesla’s margins. Sacconaghi said “cannibalization appears likely.” Some data indicate slackening demand for the S and X models ahead of the Model 3’s release. Investors will be looking for signs of this in the earnings report.

Tesla has repeatedly spoke of the differences between the Model 3 and the Model S, stressing that the Model 3, despite its name, is not meant to be an improvement over Model S or a newer version of an older model. Musk said on Twitter in late March that he was “noticing that many people think Model 3 is the “next version” of a Tesla, like iPhone 2 vs 3. This is not true.”

He added “Model 3 is just a smaller, more affordable version of Model S with less range & power & fewer features. Model S has more advanced technology.”

The company also wrote a blog post describing the differences between the two models.

While the base Model 3 will be $35,000, considerably cheaper and with fewer features than the Model S, which runs just over $70,000, there is considerable room to upgrade the Model 3, and raise the price.

The base rear-wheel drive Model 3 will only go an estimated 220 miles per charge. But the same car with the $9,000 extended range package can drive and estimated 310 miles on a single charge.

Numbers provided by Tesla show customers also can choose from a further range of options that can bump the price up to about $59,000, only $11,000 less than the Model S. Choosing any color besides black costs $1,000, while adding Autopilot costs $5,000 to $8,000, depending on the level of capability. Sport wheels are another $1,500.

However, one can see why analysts fear cannibalization of Model S sales. A base Model S with rear-wheel drive can only drive 249 miles on a single charge, and that costs $26,000 more than the Model 3 with the extended battery range.

Then there is the question of looming competition on the horizon, particularly from luxury brands.

“We think the traditional auto industry is fighting back and will have the ability to make profitable, electrified vehicles on a five-year view, and at the same time navigate the disruptive mobility landscape of car-sharing and autonomous driving with a goal of making money there as well,” said Barclays analyst Brian Johnson in a note sent Friday.

Source: Tech CNBC
Here's what to expect from Tesla's earnings report

Comments are closed.