Elon Musk, co-founder and chief executive officer of Tesla Inc., speaks during an unveiling event for the Tesla Model Y crossover electric vehicle in Hawthorne, California, U.S., on Friday, March 15, 2019.
Patrick T. Fallon | Bloomberg | Getty Images
Tesla reports Q3 2019 earnings after the bell on Wednesday, and Wall Street is expecting a 7% decline in revenue since last quarter. But analysts are keeping a watchful eye on the auto maker’s progress with a new factory in China, currently the world’s largest market for battery-powered electric vehicles, and with the Model Y, its forthcoming electric crossover SUV.
Here’s what Wall Street expects for Q3 2019:
- Losses of 42 cents per share, according to Refinitiv consensus estimates.
- Revenue of $6.33 billion, according to Refinitiv consensus estimates.
Last quarter, Tesla shares dropped after the company reported losses of $1.12 per share and $6.35 billion in revenue. At this time last year, Tesla reported a “historic” third quarter with revenue of $6.82 billion and earnings per share of $2.90.
Margins will also be in sharp focus on today’s earnings call, in part, because Tesla launched its own auto insurance offering during Q3, and new Autopilot software upgrades which may enable the company to recognize deferred revenues.
In Q3, Tesla released over-the-air software updates, including a controversial Smart Summon feature, that lets some Tesla drivers use an app to remotely call and control their cars. The cars can, in some situations, come pick them up from a short distance away, navigating a parking lot without any driver behind the wheel to do so.
Today’s third-quarter earnings update will mark the first for Tesla since the departure of co-founder and former CTO JB Straubel, and since the company completed the acquisition of two companies: A computer vision startup called DeepScale, and a battery manufacturing firm called Hibar Systems.
This is breaking news. Please check back for updates.
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