Tesla's Q4 Earnings: Deliveries Surge Amid Margins Improvements

Tesla’s upcoming earnings report, scheduled for January 29, could see positive impacts from robust vehicle deliveries and improving profit margins. With EPS growth forecasted at 4.23%, investor optimism is warranted.

Date: 28-01-2025

AI Rating: 7

Earnings Per Share (EPS): Tesla reported an EPS of 72 cents for Q3 2024, reflecting an increase from 66 cents in the previous year. The upcoming earnings consensus estimate is 74 cents per share, which indicates a growth of 4.23% compared to the prior year.

Revenue Growth: In Q3 2024, Tesla's total revenues amounted to $25.18 billion, representing a year-over-year growth of 7.2%. However, it slightly missed the consensus mark of $25.57 billion. For the upcoming quarter, revenue projections suggest a 9.28% rise year-over-year, estimating total sales of $27.50 billion.

Free Cash Flow (FCF): The report indicates a strong positive trend in FCF, with Tesla generating $2.7 billion in the reported quarter, up from $848 million in the year-ago period.

Profit Margins: Tesla’s automotive gross margin is projected to improve slightly in the next quarter, expected at 18.4% compared to 18.3% year-over-year. This could indicate effective cost management and production efficiency improvements.

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