Tesla Earnings Report – Q3 2021 review

Higher production can cover the costs? 

Market analyst – IFC Markets

Tesla will publish its earnings reports Wednesday, 20 October after market close. The report includes the third quarter ending September 2021. According to Zacks Investment Research, based on 6 analysts’ estimates, the company’s earnings per share will be $0.96. In the same quarter last year, Tesla paid $0.27 EPS. 


Tesla Earnings Report


Same as its CEO, it’s breaking the records none-stop. In the second quarter when most Tech and Auto companies had a Chip shortage and were facing different supply chain challenges, Tesla printed new records with $11.96B Revenue, which was up 15% (q/q) and 98% (y/y), and $1.45 EPS that it was also up 56% (q/q) and 230% (y/y). In the second quarter, they had more than $1B of GAAP net income (the consolidated net income of the Company and its Subsidiaries) and 11.0% of operating margin.

We are talking about an Automaker company so, as much as they deliver more auto, the income also increases. In this market now they have Volkswagen and General Motors Co. as well, which have second market share with 12.5% and 8.6%, after Tesla’s 14.6%. In the first quarter, they delivered more than 50% of their target for the entire year. In the second and third quarters also the company had the same performance. In the report, that the company published a week ago, we can see 50% more delivery than a year ago. This better than expected production, and sales, supposed to cover the expenses that shortage in the labor market, raw materials, and energy market caused. $13.7B expected sales are up 14% (quarterly) and 55% (annual), which increase the EPS expectations even up to $1.44 that can be more than 100% than a year ago.  

Shares of the company have outperformed the market in the past years. The stock has decreased from January high in the border of $900, but it has been trending upward since mid-May again and has recently tried to take back the 2021 highs especially after last week’s production report. Tesla shares have provided a total return of 87.8% over the past year, and compared with the S&P 500’s total return of 28.4%, they had an amazing performance. From the technical side also it is clearly in the uptrend, however as we can see, the market volume after staying high for a long time, it is decreasing in the past two weeks, which can be de correction signal, especially in the case of the negative report. A positive report can open the doors for 2021 high above $900. 


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