This week, all eyes are on Tesla (NASDAQ: TSLA) as investors eagerly await the company’s Q3 earnings report, set for release on October 23 after the market closes.
With Tesla’s revenue growth having shown signs of slowing in recent quarters, the big question is whether the electric vehicle giant can break through this plateau and reignite its growth momentum.
Wall Street analysts are forecasting Tesla’s Q3 earnings per share (EPS) at $0.60, reflecting a 9% decline year-over-year.
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However, revenues are expected to reach $25.67 billion, marking a 10% increase compared to the same period last year.
As of the market close on October 19, TSLA stock is valued at $220, reflecting a 4% loss over the past month. While Tesla’s projected revenue growth is encouraging, the slowing EPS growth and recent stock declines are fueling broader concerns.
Delivery numbers fall short
Earlier this month, Tesla reported its third-quarter vehicle delivery figures, which were seen as a key indicator of the company’s performance.
Tesla delivered 463,000 vehicles, surpassing market expectations. However, the numbers did not generate the same positive market reaction as in previous quarters.
Although this figure exceeded the 435,000 vehicles delivered in Q3 last year, it fell short of the record 485,000 units delivered in December 2022, further raising concerns about whether Tesla’s growth momentum is waning.
Investor concerns after Robotaxi event
Tesla also held its highly anticipated Robotaxi event earlier this month, unveiling the Cybercab, a futuristic, autonomous two-seater without a steering wheel or pedals.
While production is planned for 2026, the event left investors and analysts with more questions than answers. This lack of clarity and concrete milestones led to a sharp sell-off, with some analysts, including those from Bernstein, describing the event as “underwhelming and stunningly absent of detail.”
Additionally, Tesla introduced a Robovan prototype designed for passenger or goods transport. While the concept was bold and innovative, the absence of detailed information disappointed investors, contributing to skepticism about Tesla’s long-term goals.
Since the event, Tesla’s stock has dropped more than 15%, with the market largely pricing in the Q3 delivery figures.
A potential bright spot: Energy storage growth
Despite these challenges, Tesla’s energy storage segment has emerged as a potential bright spot. The company deployed 6.9 GWh of energy storage in Q3, a 72.5% increase from the 4 GWh deployed in Q3 2023.
This growth in energy storage could provide much-needed support for Tesla’s evolving business strategy, potentially offsetting slowing vehicle sales and margin pressures.
Looking ahead, any detailed updates regarding financing and production strategies for the Robotaxi and Optimus projects could positively impact the stock, especially if these plans offer greater clarity and assurance to investors.
