Tesla shares in focus; watch margins, self-driving, deliveries
Tesla, an all-sessions stock on IG, is likely to move on the release of the EV maker’s quarterly earnings. IGTV financial analyst @AngelineOng looks at why Tesla’s margins, self-driving and delivery targets will be key.
(Video Transcript)
Tesla's revenue expected to decline
Tesla's shares are going to be in focus as we count down to those earnings. The street is forecasting earnings of $0.74 a share, yet another contraction of the previous quarter as Elon Musk prioritises sales rather than profits since the beginning of the year.
Now, concerns might come from the top line. Revenue is expected to decline to $24.3 billion after 24.9 billion three months ago. What is key, though, is margins. Just taking a look at the chart here for you. Margins likely to drop in the third quarter.
Musk sacrifices margines for more sales
Tesla, as I mentioned earlier, has been sacrificing margins to get people to buy more because China's Byd and many other competitors are coming too close to Tesla's rear for comfort. Keep an eye out on what it says about delivery targets too.
Tesla, of course, is also being waited on to say something about the update of its 100% self-driving vehicles. It has delayed that quite a few times now, and investors want to see some sort of timeline to the delivery of autonomous real autonomous cars. Tesla is due to report tonight after the close.
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