Tesla Expected to Release Strong Q4 Earnings with Focus on Self-Driving Initiatives
Tesla is poised to release its fourth-quarter earnings on Wednesday after the market close, with investors eagerly anticipating updates on the company's self-driving and robotaxi programs.
Despite a slight year-to-date decline in its stock price, Tesla remains heavily invested in artificial intelligence and automation. Analysts expect the company's upcoming earnings report to shed light on its progress in these critical areas.
Key Analyst Predictions:
* Morningstar: Views Tesla's software advantage as robust but notes potential delays in robotaxi rollout and overvaluation of the stock.
* Wedbush Securities: Predicts a "golden age" for Tesla driven by supportive White House policies and autonomous driving initiatives. Expects a $2 trillion market cap by 2025.
* Morgan Stanley: Considers Tesla an "embodied AI ETF," with strong cash flows and potential for deferred revenue from full self-driving capabilities.
* RBC: Anticipates higher margins in the near term due to wider adoption of Tesla's full-self driving technology. Projects a delivery boost of $2.7 billion in 2025.
Earnings Expectations:
* Adjusted EPS estimate: $0.75
* Revenue estimate: $27.21 billion
* Gross margin estimate: 18.9%
* Operating income estimate: $2.68 billion
* Free cash flow estimate: $1.75 billion
* Capital expenditure estimate: $2.72 billion
Tesla's earnings conference call with analysts is scheduled for 5:30 p.m. ET on Wednesday.