Pressure on Tesla Stock: Earnings Expectations Diminish with Missed Deliveries.


Wall Street has reduced its third-quarter earnings estimates for Tesla after the company reported a larger-than-expected decline in deliveries. Analysts now predict earnings of 76 cents per share, down by a penny from earlier predictions. Full-year earnings estimates have also been lowered by over 40%. Tesla’s stock initially dropped on the news but recovered slightly, while analysts debate the impact of the recent deliveries announcement on the company’s future earnings.

Some analysts express concern about the direction of Tesla’s earnings revisions for the third and fourth quarters of this year, stating that investors should be prepared for deflation across the electric vehicle industry. However, others maintain a more positive outlook, expecting a rebound in deliveries in the fourth quarter driven by the launch of the revamped Model 3 in China and the anticipated release of the Cybertruck. Tesla’s decision to maintain its 2023 volume outlook of 1.8 million units also implies the need for a strong fourth quarter. Despite the recent drop in deliveries, Tesla’s position as a non-union shop may benefit from the United Auto Workers strike against Ford, General Motors, and Stellantis.

In terms of stock performance, Tesla currently sits in a cup-with-handle base and has a buy point of $278.98. The company ranks fourth within the automaker industry group and has a strong Composite Rating of 96 out of 99. Its Relative Strength Rating is 93, and its EPS Rating is also 93. Despite the decline in deliveries, Tesla’s stock remains an object of interest among investors.

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