With around two weeks before Tesla announces third-quarter earnings and revenue on Oct. 18, analyst predictions are dropping, as delivery data came well below the revised Wall Street consensus.
Analysts put Tesla earnings at 75 cents per share, down 2 cents vs. Sept. 29 and 45% below the forecast at the end of 2022, according to FactSet. Analysts also cut full-year earnings estimates for Tesla following the Monday deliveries announcement, dropping them 2 cents vs. Friday's forecast.
The full-year view now puts Tesla earnings at $3.29 a share, down more than 40% compared with expectations at the end of 2022, according to FactSet.
Tesla stock gained 2.6% to 252.91 Wednesday during market trade. On Tuesday, TSLA fell 2% to 246.53. Shares initially fell Monday on weak deliveries, but rallied to end the day 0.55% higher, at 251.60.
Ahead of Tesla's delivery release Monday, Wall Street estimates already had dropped to 456,000 from 473,000 at the end of July. However, Tesla delivered 435,059 during the third quarter, falling 6% compared with the second quarter.
The EV giant said the drop-off was due to "planned downtimes for factory upgrades, as discussed on the most recent earnings call."
Tesla Stock Performance
Last week, Tesla stock rose 2.2% to 250.22. On Monday, shares closed just above the 50-day line
Late Monday, Tesla launched a new U.S. Model Y variant at $43,990, with an official range of 260 miles, according to the company's website. Deliveries are set to begin in October or November. The prior base Model Y, which is no longer available, started at $47,740.
Tesla stock currently resides in a cup-with-handle base, with a 278.98 buy point, according to MarketSmith analysis.
Meanwhile, analysts maintain that the United Auto Workers strike against Ford (F), General Motors (GM) and Stellantis (STLA) is good news for Tesla, a nonunion shop.
Tesla stock ranks fourth in the 35-stock IBD automaker industry group. The S&P 500 component has a 96 Composite Rating out of a best-possible 99. Shares have an 94 Relative Strength Rating and its EPS Rating is 93.
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