Musk's Tesla to report Q1 earnings: What to expect, points to watch for, experts' predictions - Hindustan Times
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Musk's Tesla to report Q1 earnings: What to expect, points to watch for, experts' predictions

ByArya Vaishnavi
Apr 23, 2024 04:53 PM IST

JP Morgan analysts suggest Tesla has a “demand issue,” linking it to the recent layoffs

Tesla is set to report its Q1 earnings on Tuesday, April 23. Elon Musk's automotive company kicked off 2024 with a rough start, cutting down its workforce by 10%. The TSLA shares hit a rough patch after the Austin-based company reported its disappointing Q4 earnings. The previous earnings call highlighted a top-line revenue of $25.17 billion against $25.87 billion expected and a 3% increase in revenue from the past year. At the time, Musk's EV company reported an adjusted EPS of $0.71 against the $0.73 expected.

Elon Musk's Tesla is set to report its Q1 earnings on Tuesday(Reuters)
Elon Musk's Tesla is set to report its Q1 earnings on Tuesday(Reuters)

Tesla to report first-quarter earnings on Tuesday

The Q1 earnings report will be revealed after the markets close on Tuesday afternoon, providing much-needed insight for investors and shareholders. Following this, Musk, CFO Vaibhav Taneja, and Tesla's head of investor relations, Martin Viecha, will lead the earnings call with analysts. The company is also expected to provide some information about its finances, which are likely to have weakened recently.

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On Friday, TSLA hit a new 52-week low on Friday with $146.54 per share. As the stocks dropped over 40% in 2024, the company was labelled as one of the worst performers in the S&P 500. More recently, just a day ahead of the Q1 earnings call, Tesla stock dropped another 3.4%, falling to $142.05 per share. As investors await the latest earnings call, some of the pointers that are likely to be under watch are a potential new strategy, the possibility of the company's expansion into South Asia and Mexico, more information on Robotaxi, a possible announcement of Model 2, and finally, Musk's role at Tesla.

What to expect from Tuesday's earnings call?

Tesla is expected to report adjusted earnings per share of $0.52 on top-line revenue of $22.31 billion, making it the company's first revenue drop in four years, per Yahoo! Finance. Meanwhile, the company is “expected to show $1.49 billion in operating profit, a 40% slide from a year ago,” as part of its profitability. The Street has estimated $1.79 billion in adjusted net income and EBITDA of $3.32 billion in terms of non-GAAP metrics.

What are experts saying?

Barclays analyst Dan Levy thinks that Tesla will miss Wall Street's estimates during its Q1 earnings call, with disappointing gross margins. “Tesla’s deeply challenged near-term fundamentals are taking the backseat to a much larger issue, as Tesla is facing an investment thesis pivot,” Levy wrote, adding, “While investors will enter the call with significant questions on Tesla’s strategy, we believe many of these questions may be unanswered,” per Quartz.

Meanwhile, JP Morgan analysts suggest Tesla has a “demand issue,” linking it to the recent layoffs. Ryan Brinkman wrote, “[T]he sweeping layoffs announced yesterday, amounting to a reduction in crewed production capacity, should now leave no doubt that the decline in deliveries has been a function of lower demand and not supply,” per the outlet.

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