Tesla Earning Preview: Some Thoughts
This coming week, Tesla announces their earnings for the third quarter. After a record quarter in vehicle production and deliveries, the numbers being reported should also hit record territory..
In this video I discuss what to expect along with the uncertainty in profit due to the vehicle credits that can be "massaged" throughout the year.
▶️ 3Speak
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I expect the net income to be extremely higher too, seems the phenomenon of vehicle credits is here to stay no matter what I guess it's the newest thing on the block.
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Summary:
In this video, the speaker provides a preview of Tesla's upcoming earnings. The speaker draws parallels between Tesla's earnings trajectory and that of Amazon, highlighting the potential for Tesla's net income to significantly increase. He discusses Tesla's sales figures, accounting practices involving electric vehicle credits, the growth potential in their energy division, and the impact of revenues from the autonomous driving package on Tesla's financial performance.
Detailed Analysis:
The speaker begins by comparing Tesla's potential earnings trajectory to that of Amazon, noting the historical flat earnings trend followed by a sudden increase in Amazon's earnings, which could be a path that Tesla is heading towards. He mentions the growth in Tesla's vehicle sales, with a significant jump in the number of automobiles delivered between quarters, leading to a positive forecast for net income. The discussion then transitions to Tesla's accounting practices involving electric vehicle credits, with the speaker addressing criticisms of these practices as well as their impact on profitability.
Further, the speaker delves into Tesla's energy division, pointing out the substantial growth potential in this segment based on backorders for products like Powerwall and the company's efforts to secure more batteries. He anticipates a significant impact on net income from the energy division's growth, hinting at the potential for increased profits from batteries when compared to cars. The speaker then touches on the revenue recognition related to the autonomous driving package, highlighting the potential for Tesla to add revenue from previous payments made for this service, potentially boosting their net income.
Overall, the speaker presents a positive outlook for Tesla's earnings, citing factors such as increased vehicle sales, growth in the energy division, and potential revenue recognition from autonomous driving services. The discussion provides a comprehensive analysis of various elements that could contribute to Tesla's financial performance, offering insights into the company's potential for improved net income and overall financial health in the upcoming period.