With shares falling and profits shrinking, Tesla Inc. is increasingly looking like the odd one out among its mega-cap technology peers. Investors worry that quarterly results will make the electric-vehicle maker even more of an outlier.
Hatem Dhiab, managing partner of Gerber Kawasaki Wealth & Investment Management, joins and talks about Tesla's robotaxi event.
The results, due on Wednesday after the close, may not have mattered so much if Tesla had awed investors with its splashy reveal of a self-driving car earlier this month. But the robotaxi failed to live up to high expectations, putting more pressure on the company’s bread-and-butter business of selling EVs.
A better-than-expected set of numbers would help shore up some confidence in the near term, though analysts warned that a big move higher for the shares may be difficult without more clarity about longer-term growth. The third-quarter estimates represent a significant drop from a year ago, when analysts had forecast EPS of $1.09. Meanwhile, the main metric that traders watch — automotive gross margin excluding regulatory credits — is expected to be 14.9%, up slightly from the second-quarter figure of 14.6%.
Lower profit expectations have also made Tesla’s stock valuation appear even more pricey. At 74 times forward earnings, it’s the most expensive of the mega-cap group, which consists of Amazon.com Inc., Microsoft Corp., Apple Inc., Alphabet Inc., Meta Platforms Inc. and Nvidia Corp.
Consumer Goods Retail Consumer Discretionary Company News Electrical Equipment Financials Industrials Industry Legal Markets Semiconductors Sports Stock Market News Technology Communications Top News World Top World
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tesla stock had a rough week — here's what's next for the EV makerTesla stock was on pace to end the week down more than 4% on Friday.
Read more »
Tesla's robotaxi event: Why this analyst is bearish on EV makerAhead of Tesla's (TSLA) robotaxi event this Thursday, October 10, Guggenheim Securities director of automotive equity research Ronald Jewsikow joins Seana...
Read more »
Futures mixed as banks kick off Q3 earnings season; Tesla fallsThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Read more »
September PPI, Big Bank earnings, Tesla Cybercab: 3 ThingsThe Producer Price Index (PPI) cooled month-over-month in September, holding steady while economists expected a 0.1% increase in prices. The inflation...
Read more »
Futures fall as investors brace for earnings season; Tesla dipsShares of Tesla dropped 5.8% in premarket trading after the EV maker unveiled its long awaited robotaxi, but did not provide details on how fast it could...
Read more »
Tesla earnings, Fedspeak, home sales: What to Watch Next WeekTesla (TSLA) kicks off the earnings season for Magnificent Seven tech names next week. Other notable companies publishing their quarterly results include...
Read more »