Wall Street’s learning season is about to get hot next week with big tech accounts. On Monday 26 April it will be Tesla and Alphabet’s turn, on Tuesday 27 April there will be Microsoft, while on 28 April the accounts of three giants will arrive (Apple, Amazon e Facebook).
On Monday we will therefore start with Tesla and the expectation is great to know the results of the electric vehicle manufacturer led by the histrionic Elon Musk which will almost certainly reflect the favorable impact of the increase in deliveries of the Model 3 and of Model Y which make up the lion’s share of the group’s overall deliveries.
Tesla shares in recent months have been more volatile than usual. The dizzying performances of 2020 have made room for a continuous ups and downs with theThe stock that marks a narrow + 1.9% Ytd compared to the S&P 500 index which instead boasts a + 12% since the beginning of 2021. Considering that in January Tesla had reached an all-time high of $ 900, the stock now travels 20% below those levels.
Tesla could change this non-exciting trend in the event of strong first quarter earnings.
Tesla: great anticipation for the quarterly
Wall Street’s expectations are for adjusted earnings of $ 0.74 per share, compared to $ 0.25 per share in the first quarter of 2020. If the company meets this estimate, it would be the Tesla’s seventh consecutive quarter of profit. Analysts also expect Tesla to report revenue of $ 10.5 billion in the first quarter, up from $ 6 billion in the period a year ago.
Earlier this month, Tesla announced it had delivered 184,800 vehicles globally in the first three months of 2021, beyond consensus estimates of 169,000 vehicles. Breaking the previous record of 180,570 in the final quarter of 2020. Tesla said it was encouraged by the Model Y’s strong reception in China and noted that it is rapidly progressing towards full production capacity. There China represents the largest EV market in the world. Data from the China Passenger Car Association showed that Tesla delivered 69,280 vehicles in the region for the first quarter.
Tesla has avoided providing specific sales guidance for 2021 and investors await any guidance on this.
In the last quarter of 2020, Tesla had recorded earnings of 80 cents per share, below market expectations. The Palo Alto automaker also posted its first-ever annual net profit in 2020. In the quarter ending in late December, Tesla reported delivery and production figures of 180,667 and 179,757 vehicles, respectively, reflecting a year-on-year increase of 61% and 71%.
With the Model 3 sedan as the flagship vehicle, Tesla has established itself as a leader in the EV segment. The solid performance and impressive design of its products should have boosted sales volumes during the quarter under review. As the first mass electric car in North America and Europe, the Model 3 is one of the best-selling vehicles. The car’s market-leading safety, impressive performance and specs made it a huge success. But quarterly results coming in late April are expected to mark an increase in production and deliveries of Model Y vehicles that are likely to support the Californian automaker’s earnings.