U.S. stock index futures fell on Wednesday as Treasury yields rose on expectations the Federal Reserve could keep interest rates higher for longer, while a slide in Tesla and Netflix shares was set to weigh on the tech-heavy Nasdaq.
(RTTNews) - Tesla Inc. (TSLA) will host a conference call at 5:30 PM ET on April 19, 2023, to discuss Q1 23 earnings results. Tesla is scheduled to report results on Tuesday, April 19, after market close.
The Biden administration's emissions proposals would give a powerful boost to Tesla, General Motors Co, Ford Motor Co and other automakers that have bet on an EV-dominated future. Clamping down on combustion vehicle emissions will raise the cost of trucks like the Tundra. Billions in production and charging infrastructure subsidies should help make EVs cheaper and more desirable to consumers.
When you want to track what stocks are popular among retail investors, one good gauge is Robinhood Markets' Investor Index, which tracks the 100 most commonly held stocks among users of the popular Robinhood trading platform. And near the top of the list is electric vehicle (EV)
Global stocks eased on Wednesday, while the dollar pulled further above last week's one-year lows, as investor focus honed in on what the Federal Reserve may have to do to tame inflation, rather than on the recent problems in the U.S. banking sector.
Leading
electric vehicle (EV) maker Tesla (
NASDAQ:TSLA
) is scheduled to announce its first-quarter
earnings after the stock market closes on April 19. After nine consecutive quarters of beating earnings estimates, will TSLA beat earnings again?
Traffic to TSLA's Website - Predicting Great Things!
Further, TipRanks’ Website Traffic Tool indicates that
visits to tesla.com grew 23.4% quarter-over-quarter in Q1 2023. The quarter-over-quarter growth rate in website visits bodes well for Q1 revenue.
At the same time, the company
failed to impress investors with its Q1 deliveries of 422,875 vehicles, which marked a 36% year-over-year growth but was lower than the 440,808 vehicles produced in the quarter. This raised concerns about continued inventory build-up. Moreover, investors are keen to know about the impact of Tesla’s multiple price cuts on Q1 margins.
Tesla’s Q1 Margins in Focus
Tesla’s CEO
Elon Musk triggered a price war in the EV space through multiple price cuts in the U.S., Europe, China, and other regions. Recently,
Tesla slashed prices in Europe, Singapore, and Israel. This month, the company announced another round of price cuts in the U.S.
The company is trying to spur demand amid macro pressures and growing competition. Analysts have mixed opinions about the impact of price cuts on Tesla’s margins.
Last week, Baird analyst
Ben Kallo reiterated a Buy rating on Tesla with a price target of $252 in reaction to the company’s
latest price cuts in the U.S.
Kallo continues to believe in the company’s ability to deliver industry-leading operating margins. He feels that Tesla is in the best position to weather economic headwinds.
In contrast, another analyst, Wells Fargo's
Colin Langan, reaffirmed a Hold rating last week. He gave a price target of $190 in reaction to the company’s most recent U.S. price cuts. Langan expects Tesla’s Q1 auto gross margins to miss the greater than 20% target. The analyst expects Q1 EPS of $0.69, which he pointed out was below the consensus estimate of $0.86.
The analyst noted that while price cuts boosted Q1 deliveries, the company will need higher deliveries to achieve its full-year target of two million vehicles. “This implies a risk of more price cuts, without at least a major refresh,” said Langan.
Overall, Wall Street’s consensus
Q1 EPS estimate of $0.86 reflects a year-over-year decline of nearly 20%. Meanwhile, the company’s revenue is expected to increase by over 26% to $23.73 billion.
Is Tesla a Buy, Sell, or Hold?
Wall Street is cautiously optimistic about Tesla, with a Moderate Buy consensus rating based on 18 Buy, 10 Hold, and three Sell analyst ratings. The average
TSLA stock price target of $219.15 suggests nearly 19% upside potential.
Conclusion
Earlier this year, Tesla impressed investors with its
market-beating Q4 2022 results. The focus this time would be on the company’s first-quarter margins following price cuts in key markets. Investors will also pay attention to management’s comments on demand in a tough macro backdrop and any updates on new models.
Disclosure
Tesla Inc late on Tuesday further slashed prices in the United States for some of its Model Y and Model 3 electric vehicles, according to its website, ahead of its first-quarter results on Wednesday.
Chinese electric vehicle maker Xpeng Inc is the latest manufacturer hoping to save money and speed development and production by shifting to a digital vehicle architecture - an approach that bears a striking resemblance to Tesla Inc's.
Nvidia's stock jumped to its highest in a year on Tuesday, extending a recent rebound after HSBC flipped its recommendation on the graphics chipmaker to "buy" from "reduce," pointing to opportunities in artificial intelligence.
Tesla TSLA is set to release its first-quarter 2023 results on Apr 19, after the closing bell. The focal point of the electric vehicle (EV) manufacturer’s earnings release will be its vehicle production and deliveries. Stronger-than-expected deliveries during the quarter
Electric carmaker Tesla Motors TSLA is scheduled to report first-quarter 2023 results on Apr 19 after market close. Let’s take a closer look at its fundamentals ahead of the earnings release.Tesla stock has risen about 52% so far this year, outperforming the Zacks industr
A full-blown electric vehicle (EV) price war has erupted in China. U.S. EV king Tesla TSLA has sparked an EV price war in China that has resulted in massive price cuts by various automakers in the world’s largest car market. It all started in October when Tesla cut the pr
Foxconn's recent collaboration with Nvidia (NASDAQ: NVDA) on autonomous driving software and commitment to EV manufacturing may open new doors for chip stocks. Check out the short video to learn what semiconductor investors Jose Najarro, Nicholas Rossolillo, and Billy Duberstein
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