Sparks Spotlight: Tesla reports 🔋

It’s a busy week for third-quarter 2022 earnings, with more than 60 S&P 500 companies reporting. One of those companies is the Electric Vehicle manufacturer, Tesla (NASDAQ: TSLA). These earnings come at a time when the company is facing increasing pressure amidst a wide sell-off in the markets which has been felt by mega-cap growth stocks the most.

Tesla’s stock price has tumbled almost 50% since its all-time high in November 2021. Aside from the worries of investors bracing for rising inflation and higher interest rates, Tesla has some of its own concerns too.

Despite returning to record levels in the third quarter of 2022, deliveries were still short of Wall Street forecasts, meaning the company will require a further push in the last three months of 2022 to meet annual growth targets. While the company has attributed falling short to logistical issues, some analysts have pointed to evidence of slowing demand for new cars in the US due to rising interest rates.

CEO Elon Musk’s widely publicised will-they-won’t-they with Twitter (NYSE: TWTR) might have also been a drag on the stock. There are concerns that, on top of Tesla, SpaceX, Neuralink and The Boring Company, the eccentric billionaire could be stretching himself too thin. At least if something goes wrong, Musk can always fall back on his new job as a perfume salesman.

Tesla reports Wednesday 19 October 2022 after market close.

The numbers:

• Tesla delivered 343,830 vehicles globally in the three-month period ended in September 2022, less than estimated by analysts. Wednesday’s anticipated earnings report may show how this has affected the company’s bottom line
  
• Tesla will need to deliver roughly 495,000 vehicles in the fourth-quarter of 2022 in order to meet its long-term goal of increasing output by 50% annually
  
• The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 95 cents per share and $22.28 billion, respectively. Tesla has beat the Zacks Consensus Estimate on all occasions over the last four calendar quarters
  

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