Tesla Faces Mixed Signals Ahead of Q4 2024 Earnings Report

Tesla is set to release its fourth-quarter 2024 results on Jan. 29. The earnings per share and revenue estimates suggest positive year-over-year growth, although delivery figures have missed expectations, raising concerns among investors.

Date: 23-01-2025

AI Rating: 6

Earnings Per Share (EPS): The Zacks Consensus Estimate for Tesla's fourth-quarter earnings is at 76 cents per share, which reflects a year-over-year growth of 7.04% from the previous period. This indicates a generally positive trend in earnings, suggesting investor confidence could remain stable despite recent challenges.

Revenue Growth: The consensus estimate for Tesla's fourth-quarter revenue stands at $27.61 billion, representing a year-over-year increase of 9.72%. This growth trajectory in revenue could alleviate some negative sentiment stemming from the company's delivery performance.

Net Income: The text does not provide direct figures for net income. However, the positive indicators from EPS and revenue growth suggest that net income may likely be favorable, aligning with the revenue increases.

Profit Margins: The report mentions an expected increase in automotive gross margin by 10 basis points to 18.4%. This slight positive outlook on profit margins reflects operational improvements despite the decline in delivery numbers, potentially cushioning the impact of increased costs.

Free Cash Flow (FCF) and Return on Equity (ROE): The analysis lacks specific data on Free Cash Flow and Return on Equity, leaving those critical metrics unassessed in this instance.

Overall Analysis: Although Tesla is facing some challenges with deliveries—missing projections—it still anticipates positive growth in both earnings and revenue. Furthermore, improved manufacturing efficiency may lead to better profit margins. These mixed signals suggest a cautious approach for investors, balancing the brighter outlook against the risks associated with delivery performance.

Stocks: TSLA GM PCAR F