Tesla post-earnings performance: will Tesla's Q3 2024 earnings spark stock movement?
With Tesla set to announce Q3 earnings on 24 October, investors are watching how the company tackles profit margin pressures and competition.
(AI summary)
Revving up for earnings: Tesla's financial roadmap
Tesla is known for its significant share price fluctuations around earnings announcements, and is scheduled to report its third quarter (Q3) earnings on Thursday, 24 October at 7.10am (AEDT).
The company has been navigating a challenging landscape, characterised by narrowing profit margins and heightened competition, which have weighed on its financial outlook. Despite these headwinds, Tesla's stock has shown a commendable recovery, with strong quarterly delivery figures.
With the Q3 report fast approaching, investors are closely monitoring the following aspects:
- Impact of recent price cuts on profit margins
- Progress on the Robotaxi project
- Updates on Full-Self-Driving technology and regulatory approvals
- Effects of executive departures on company operations
- Outlook for fourth quarter (Q4) 2024 and full-year 2025 deliveries
This article outlines how Tesla’s stock price has reacted immediately, one week, and one month after earnings reports from Q3 2022 to the second quarter (Q2) 2024.
Key financials
Expectations for Q3
- Revenue: $25.54 billion
- Earnings per share (EPS): $0.60
Comparision to previous quarter
- Revenue: $25.50 billion
- Revenue growth: 2% year-on-year (YoY)
- EPS: $0.52
Post earnings performance analysis
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Immediate reactions (one day)
Tesla’s one-day post-earnings responses have been mixed. In Q3 2022, the stock saw a small increase, followed by a stronger positive reaction in Q4 2022. However, this was followed by a downturn in the following quarters, with the first quarter (Q1) 2023, Q2 2023, and Q3 2023 showing declines. By Q1 2024, Tesla experienced another surge in its share price post-earnings, but the reaction in Q2 2024 was relatively flat
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Short-term adjustments (one week)
One-week movements reveal more volatility. A significant spike of over 20% occurred in Q4 2022. However, Q1 2023 and Q2 2023 experienced consistent declines, reflecting the market’s adjustment after initial earnings reactions. In Q1 2024, Tesla’s share price continued to rise in the short term, only to stabilise by Q2 2024
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Medium-term trends (one month)
Tesla’s one-month post-earnings movements have shown more pronounced changes. A major gain of nearly 40% was seen in Q4 2022. However, in many of the following quarters, particularly Q1 2023 and Q2 2023, the stock experienced notable declines. Although the gains continued through Q1 2024, the medium-term trend turned downward again by Q2 2024
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Overall patterns
The data shows that Tesla’s stock tends to surge after positive earnings announcements, such as in Q4 2022 and Q1 2024. However, during quarters with weaker results or missed expectations, like in Q2 2023, the stock faced sharp corrections. These declines often extended into both the short- and medium-term
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Implications for investors
Tesla’s stock is highly volatile around earnings. While short-term gains are possible, so are significant drops. Investors should carefully consider Tesla's long-term outlook and be prepared for sharp moves during earnings periods.
Tesla's post-earnings performance chart
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