Don't Stop Believing in Tesla - Earnings Report Projection
Updated
Tesla's stock has fallen by roughly 40% this year as a result of oversold conditions. During the negative market phase, Tesla has experienced a greater decrease than the typical corporation, making its value appear more and more appealing. In addition, the business will undoubtedly outperform profits projections when it reports earnings on 20th July, and likely announce a stock split next month. Tesla also has an interesting new product that should hit the market next year, so the business may continue to outperform even if the slowdown lasts for a while. As the firm develops, Tesla is expected to continue exceeding consensus profit projections. As a result, Tesla's stock is now rather affordable, should be purchased during periods of weakness, and is expected to increase significantly over the next few years.
Tesla Financials
Tesla has not seen the dramatic EPS adjustments that the majority of corporations have. Forecasts for 2023 EPS are currently greater than they were quarter ago. This scenario shows that analysts may believe that earlier EPS predictions may have been overly low and that the firm may weather a slump better than other companies. Finally, this dynamic suggests that a temporary slowdown is unlikely to have an effect on Tesla's longer-term profitability.
In the rapidly developing EV market, Tesla continues to dominate. Tesla is the holy grail of electric vehicles, therefore even while a recession might temporarily have a small negative influence on the company's expansion, it is unlikely to have a long-term impact.
The Ukraine conflict, rising oil prices, and inflation have all contributed to sky-high gas and electricity costs. Record-high gas costs will likely encourage more people to purchase electric vehicles, with Tesla standing to gain the most from this trend. Therefore, over the long run, a recession should have little impact on Tesla's growth, profitability potential, and stock price trajectory, making the stock a great buy on any recession-related dip as we move forward.
If the shareholders accept it on August 4th, Tesla will split its stock once more. The majority of the time, stock splits are a positive move for equities. Tesla's share price would decrease from over $700 to approximately $277 as a result of the planned 3-1 split, making them more accessible to investors.
Tesla P.E Ratio
Tesla released its manufacturing and delivery figures. In the previous quarter, the business delivered 16,162 Model S/X vehicles and 238,533 Model 3/Y automobiles. The tremendous 750 percent increase in Model S/X sales was the first item that stood out in the positive data. Last year, there were some worries that the Model S/X car market would be oversupplied or that demand was waning. However, there is a substantial demand for Tesla's more expensive cars. Due to Tesla's temporary manufacturing prioritising of Model 3/Y automobiles, sales last year decreased. This sales pattern suggests that Tesla should continue to make significant profits from the luxury vehicle sector in the upcoming years.
Positive Cashflow
Tesla recorded a net income margin of 17.7 percent for last quarter. The most lucrative (conventional) carmaker Toyota (TM), which just recorded a gross revenue margin of 19 percent and a net income margin of 9 percent, is far less profitable than Tesla in terms of profitability indicators. Honda (HMC) has a gross profit margin of roughly 20% and a net profit margin of about 5%. Most of the time, their American equivalents have even lower profitability margins, with General Motors (GM) recently claiming a gross margin of roughly 15% and a net income margin of about 7%.
Although the average expectations for Tesla's future P/E ratio are only around 40, the business may have stronger than expected profits in the current quarter and in 2023. Higher-end 2023 EPS forecasts range up to roughly $21.37, and Tesla has outperformed consensus estimates by an average of 27.9 percent over the past four quarters. Given how consistently Tesla exceeds consensus expectations, many analysts may still be underestimating the company's profitability potential. Therefore, Tesla's EPS statistics may continue to grow more quickly than expected. The Tesla Semi should also start selling by the end of the next year. As Semi truck deliveries and bulk production get underway, Tesla's revenue will probably experience a significant increase. Tesla's future P/E ratio appears to be excessively low given the company's rapid growth pace. Therefore, in the future, Tesla's forward P/E might increase to about 37 and stay in the 32 to 40 area. In the upcoming years, Tesla's EPS should rise significantly, and as the company develops, its stock price may rise significantly.
Tesla Financials
Tesla has not seen the dramatic EPS adjustments that the majority of corporations have. Forecasts for 2023 EPS are currently greater than they were quarter ago. This scenario shows that analysts may believe that earlier EPS predictions may have been overly low and that the firm may weather a slump better than other companies. Finally, this dynamic suggests that a temporary slowdown is unlikely to have an effect on Tesla's longer-term profitability.
In the rapidly developing EV market, Tesla continues to dominate. Tesla is the holy grail of electric vehicles, therefore even while a recession might temporarily have a small negative influence on the company's expansion, it is unlikely to have a long-term impact.
The Ukraine conflict, rising oil prices, and inflation have all contributed to sky-high gas and electricity costs. Record-high gas costs will likely encourage more people to purchase electric vehicles, with Tesla standing to gain the most from this trend. Therefore, over the long run, a recession should have little impact on Tesla's growth, profitability potential, and stock price trajectory, making the stock a great buy on any recession-related dip as we move forward.
If the shareholders accept it on August 4th, Tesla will split its stock once more. The majority of the time, stock splits are a positive move for equities. Tesla's share price would decrease from over $700 to approximately $277 as a result of the planned 3-1 split, making them more accessible to investors.
Tesla P.E Ratio
Tesla released its manufacturing and delivery figures. In the previous quarter, the business delivered 16,162 Model S/X vehicles and 238,533 Model 3/Y automobiles. The tremendous 750 percent increase in Model S/X sales was the first item that stood out in the positive data. Last year, there were some worries that the Model S/X car market would be oversupplied or that demand was waning. However, there is a substantial demand for Tesla's more expensive cars. Due to Tesla's temporary manufacturing prioritising of Model 3/Y automobiles, sales last year decreased. This sales pattern suggests that Tesla should continue to make significant profits from the luxury vehicle sector in the upcoming years.
Positive Cashflow
Tesla recorded a net income margin of 17.7 percent for last quarter. The most lucrative (conventional) carmaker Toyota (TM), which just recorded a gross revenue margin of 19 percent and a net income margin of 9 percent, is far less profitable than Tesla in terms of profitability indicators. Honda (HMC) has a gross profit margin of roughly 20% and a net profit margin of about 5%. Most of the time, their American equivalents have even lower profitability margins, with General Motors (GM) recently claiming a gross margin of roughly 15% and a net income margin of about 7%.
Although the average expectations for Tesla's future P/E ratio are only around 40, the business may have stronger than expected profits in the current quarter and in 2023. Higher-end 2023 EPS forecasts range up to roughly $21.37, and Tesla has outperformed consensus estimates by an average of 27.9 percent over the past four quarters. Given how consistently Tesla exceeds consensus expectations, many analysts may still be underestimating the company's profitability potential. Therefore, Tesla's EPS statistics may continue to grow more quickly than expected. The Tesla Semi should also start selling by the end of the next year. As Semi truck deliveries and bulk production get underway, Tesla's revenue will probably experience a significant increase. Tesla's future P/E ratio appears to be excessively low given the company's rapid growth pace. Therefore, in the future, Tesla's forward P/E might increase to about 37 and stay in the 32 to 40 area. In the upcoming years, Tesla's EPS should rise significantly, and as the company develops, its stock price may rise significantly.
Note
Tesla (NASDAQ:TSLA) reported second-quarter earnings that beat analysts' forecasts and slightly exceeded the revenue expectations.EPS ESTIMATE - (1.81USD),
REPORTED EPS - (2.27USD),
SURPRISE % - (25.64%),
REVENUE FORECAST - (16.539BUSD),
REVENUE ACTUAL - (16.934BUSD).
They sold more than 75% of their Bitcoin holdings in the end of 2021, another great move to keep balance sheet healthy.
#STAYLONG #STAYPROFITABLE
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