Cyber Rodeo (TSLA Earnings)
After the close, Tesla (TSLA) is scheduled to report 1Q22 results with a conference call set to follow at 5:30 p.m. E.T.
For the quarter, analysts are expecting TSLA to report EPS and revenue of $2.27 and $17.8 bln, respectively.
TSLA doesn't offer formal EPS or revenue guidance, but they do provide annual vehicle delivery growth over a multi-year horizon forecast.
Since the shutdown occurred late in the quarter, the impact should not be severe for Q1.
TSLA reported that Q1 deliveries jumped by 68% to 310,048 on April 4, just missing the consensus estimate. Despite missing, investors took the result as a win given that supply chain disruptions have intensified due to the government-imposed lockdowns (China).
The thing to be weary of is that TSLA could provide a more cautious outlook for deliveries in Q2 and/or for FY22.
Reports have surfaced that the (squid games) factory production restarted in Shanghai this week (attached).
Sleep on the floor.
The Berlin factory officially opened on March 22. The goal is that the plant will be able to produce 500K vehicles annually, but it will take time for TSLA to ramp up to that level. The lower production rate means that manufacturing efficiencies will lag TSLA's Fremont and Shanghai factories. Keep that in mind when you look for gross margins. Gross margins have been a source of strength for TSLA. This inefficiency coupled with the lock down could cause a slip in 2H22.
Last quarter, automotive gross margin jumped by 648 bps yr/yr to 30.6%.
According to Tesla, and this is likely a bullshit excuse, supply chain issues have caused TSLA to delay its Cybertruck and semi truck launches.
On April 8, the company held an event to open its Austin, TX factory, where the Cybertruck and semi will eventually be produced. During the event, Musk stated that production for both vehicles will begin next year. Of course, and most likely, the timeline could (will) be pushed back further if supply chain disruptions haven't eased by then (they won’t).
TECHS:
The showman, CEO Elon Musk, has distracted the audience with the latest notable fiasco around Twitter (TWTR). He offered to purchase the social media company for $54.20/share on April 14.
Of course, there's some fear that Musk's focus on TWTR will create a significant distraction that hinders TSLA's execution.
Notably, shares of TSLA have slid by about 15% since Musk's equity stake in TWTR was first revealed on April 4. Quick someone let the gatekeeper of fiduciary responsibility Ron Desantis know.
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