Tesla Q3 2024 earnings preview post Robotaxi unveiling amid executive departures
Tesla is set to report its Q3 2024 earnings on 23 October. Here's what to expect from the electric vehicle giant's results and recent developments.
Tesla's Q3 2024 earnings expectations
Tesla is scheduled to release its third-quarter (Q3) earnings report on 23 October 2024. Analysts are projecting a slight decline in earnings per share compared to the previous year. The consensus estimate for revenue stands at approximately $25.34 billion.
These projections come amidst a challenging market environment for Tesla. The company has been grappling with narrowing profit margins and a blunted near-term outlook, largely due to slumping electric vehicle (EV) prices and intensifying competition in key Asian markets.
Despite these challenges, Tesla's stock has shown resilience, rising nearly 70% from its late-April low. This uptick can be attributed to improved quarterly delivery figures and CEO Elon Musk's continued emphasis on the profit potential of autonomous driving technologies.
Tesla share price weekly candlestick chart
Robotaxi unveiling: A pivotal moment for Tesla
In a significant move, Tesla on Thursday 10 October unveiled its highly anticipated Robotaxi, showcasing the company's vision for a global fleet of autonomous vehicles. The event featured two new self-driving vehicles: a compact, self-driving coupé called the Cybercab, and a larger self-driving van with 20 seats dubbed the Robovan.
Both vehicles operate without steering wheels or pedals, relying on artificial intelligence (AI) and cameras rather than Lidar sensors and inbuilt mapping software. Musk announced plans to begin producing the Cybercab by 2027, with a projected consumer price of $30,000.
This unveiling represents a key component of Tesla's future strategy, with some analysts projecting significant revenue potential from this venture. Some analysts increased their Tesla price target, suggesting that the robotaxi business could represent $153 billion in revenue for Tesla.
Tesla Smart Score and analyst rating
Tesla has a Smart Score of ‘7 Neutral’ and is rated as a ‘hold’ by analysts with 11 ‘buy’, 16 ‘hold’ and 8 ‘sell’ (as of 11/10/2024).
According to LSEG Data & Analytics, analysts rate the Tesla share between a ‘buy’ and a ‘hold’ with 8 ‘strong buy’, 14 ‘buy’, 19 ‘hold’, 9 ‘sell’ and 4 ‘strong sell’ (as of 11/10/2024).
Executive departures and leadership changes
The Robotaxi unveiling came at a time of significant changes within Tesla's leadership. Four of Elon Musk's direct reports recently announced their exits from the company, with several of these executives having dedicated nearly a decade or more to Tesla.
This shake-up in leadership occurs as Tesla shifts its focus from traditional automaking to autonomous driving, robotics, and AI-related technologies. The impact of these departures on the company's operations and future strategy will likely be a topic of interest during the earnings call.
Market challenges and future outlook
Tesla faces several challenges as it heads into its Q3 earnings report. The company has been struggling with a pullback in consumer demand and intensifying competition, particularly in key Asian markets. These factors have impacted Tesla's earlier forecasts of 50% annual growth in overall deliveries.
However, Tesla continues to expand its presence globally. The company recently announced plans to make its 'Full-Self-Driving' advanced driver-assistance software available in Europe and China next year, pending regulatory approvals.
The global robotaxi market is projected to generate substantial revenue by 2040, with estimates reaching $1.7 trillion. However, some analysts remain sceptical, arguing that previous predictions about the size and scale of the robotaxi market have been overly ambitious.
Investor focus for Q3 earnings
As Tesla prepares to release its Q3 earnings, investors will likely focus on several key areas:
- Impact of recent price cuts on profit margins
- Progress on the Robotaxi project and its potential revenue contribution
- Updates on Full-Self-Driving technology and regulatory approvals
- Effects of executive departures on company operations
- Outlook for Q4 2024 and full-year 2025 deliveries
How to trade Tesla's Q3 earnings
Tesla's Q3 earnings report could potentially impact its share price. Here are steps to consider if you're interested in trading Tesla shares:
- Do your research on Tesla and the EV market
- Choose whether you want to trade or invest
- Open an account with us
- Search for Tesla in our platform or app
- Place your trade
Remember, spread betting and CFD trading are leveraged products and can result in losses exceeding your deposits. Always ensure you understand the risks involved and never invest more than you can afford to lose.
For those looking to invest for the longer term, consider opening a share dealing account to buy Tesla shares outright.
As Tesla continues to innovate and expand its presence in the autonomous vehicle market, its Q3 earnings report will provide valuable insights into the company's financial health and future prospects. Whether you're an investor or a trader, staying informed about Tesla's performance and strategic moves is crucial in making well-informed investment decisions.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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