Charger with Tesla logo at a Supercharger rapid battery charging station for the electric vehicle … [+]
Tesla is scheduled to report earnings after Wednesday’s close. The stock hit a record high of $488.54/share in 2024 and is currently trading near $394. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $0.75/share on $27.61 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.79/share. The Whisper number is the Street’s unofficial view on earnings.
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A Closer Look At The Fundamentals
The company has managed to grow its earnings nicely over the last few years. In 2018, the company lost -0.09, and in 2023 the company earned $3.12. However, earnings are expected to slide to $2.46 in 2024 and then grow to $3.31 in 2025. Meanwhile, the company sports a price-to-earnings ratio of 166, which is 6.6x the S&P 500.
A Closer Look At The Technicals
Technically, the stock is trading around 19% below its 52-week high. It had a huge run after President Donald Trump’s election and it is now pausing to consolidate that big run. The stock is currently trading above its 50 and its 200-day moving average lines, which is a healthy sign. The bulls want to see the stock gap up and rally after reporting earnings and the bears want to see it gap down and fall.
Company History
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning, with Elon Musk joining as the primary investor in 2004. Initially conceived as a high-performance electric vehicle company, Tesla’s first breakthrough came with the Roadster in 2008, a revolutionary all-electric sports car that challenged traditional automotive thinking. Musk became CEO that same year, transforming the company from a startup into a potential industry disruptor.
The company’s real transformation occurred with the Model S sedan, launched in 2012, which demonstrated that electric vehicles could be both technologically advanced and desirable luxury products. Tesla’s subsequent models — the Model X SUV, Model 3 sedan, and Model Y crossover — progressively made electric vehicles more accessible to mainstream consumers. By introducing innovative features like over-the-air software updates, advanced autopilot capabilities, and a robust charging network, Tesla redefined what an automobile could be.
By 2023, Tesla had become the world’s most valuable automotive company, with a market capitalization exceeding many traditional automakers combined. The company expanded beyond vehicles, developing solar energy products, battery storage solutions, and pushing the boundaries of autonomous driving technology.
Under Musk’s leadership, Tesla has not just sold cars, but sold a vision of sustainable transportation and energy, challenging global perceptions about electric vehicles and positioning itself as a technology company that happens to make cars.
Company Mission
Tesla’s mission is to “accelerate the world’s transition to sustainable energy.”
Company Profile
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage.
The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans.
The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers.
The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com weekly stock market report.