Key Takeaways
- Telsa is set to announce its earnings for the first quarter of 2024 after the closing bell on Tuesday.
- Analysts expect Tesla’s revenue and adjusted profit to have fallen from the previous quarter and the prior-year period.
- The electric vehicle (EV) maker reported a decline in deliveries, which is seen dragging down earnings.
- Tesla could also provide updates on its product road map after CEO Elon Musk announced that the robotaxi would be unveiled in August.
- Investors will be paying particularly close attention to what Musk says during the earnings call that is scheduled for 5:30 p.m. ET.
Tesla (TSLA) is set to announce its first-quarter 2024 earnings after the bell on Tuesday, with declining deliveries expected to drag down revenue and investors looking for updates on the company’s product road map after setting a date for the launch of its robotaxi.
Analysts project Tesla’s revenue to come in at $22.25 billion for the first quarter of 2024, down from the previous quarter and year-ago period, according to estimates compiled by Visible Alpha.
Adjusted net income is expected to be $1.88 billion, a decline from $2.49 billion last quarter and $2.93 billion in the prior-year quarter, while adjusted dilutedearnings per share (EPS)are projected at 52 cents, compared with 71 cents in Q4 and 85 cents in last year’s first quarter.
Analysts slightly lowered their revenue estimates ahead of the earnings report.
| Analyst Estimates for Q1 2024 | Q4 2023 | Q1 2023 | |
| Revenue | $22.25 billion | $25.17 billion | $23.33 billion |
| Adjusted Diluted Earnings Per Share | 52 cents | 71 cents | 85 cents |
| Adjusted Net Income | $1.88 billion | $2.49 billion | $2.93 billion |
Key Metric: Q1 2024 Deliveries Tumble
Tesla already reported delivery numbers for the first quarter of 2024 that fell short of analyst expectations, dragging down the stock.
The electric vehicle (EV) maker delivered 386,810 vehicles in the first quarter of 2024, down about 8.5% from the same period in 2023, which could reflect declining EV demand. Tesla reportedly plans toslash its workforceby more than 10% as demand for EVs slows.
Wedbush Securities analysts said that “1Q deliveries was a nightmare quarter for Tesla with China and global EV demand remaining very soft coming out of the gates for 2024.” They noted that it “is a crucial period for [Tesla CEO Elon] Musk to navigate Tesla through this Category 5 demand storm,” with investors likely to be paying particularly close attention to what Musk says during the earnings call that is scheduled for 5:30 p.m. ET.
Business Spotlight: Product Road Map After Robotaxi News
Musk on April 5 said that the company will unveil its robotaxi, a next-generation self-driving vehicle first mentioned in 2019, on Aug. 8.
“Musk has said in the past that Tesla will make a car without controls for human use, saying in the past that [Full Self-Driving] will reach a point of full autonomous use for taxi and driverless scenarios,” Wedbush analysts explained.
The robotaxi announcement came shortly after Musk denied a report that Tesla was abandoning its long-standing plan to create a low-priced EV, expected to be called the Model 2.
The analysts said that “Tesla right now is caught between ‘two waves of growth’” as “patience is starting to wear very thin among investors,” and that a robotaxi is “not the near-term answer.” Wedbush said that the firm “remain[s] long-term bullish; however, this is a crucial few months ahead for Musk and Tesla to give the Street its blueprint for growth into 2025.”
Tesla shares were up 2.5% at $145.58 at around 2:45 p.m. ET. The stock, which was the biggest decliner in the index in the first quarter, has lost 41% of its value since the beginning of the year.
UPDATE—April 23, 2024: This article has been updated to include the latest consensus estimates from analysts and share price information.
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Tesla Investor Relations. “Tesla Vehicle Production & Deliveries and Date for Financial Results & Webcast for First Quarter 2024.”
Wedbush Securities. “Robotaxi is NOT the Answer for Now; Model 2 Needs to Be on the Tesla Blueprint.”
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