Tesla will release its Q4 2024 earnings after the market closes, around 4:05 p.m. ET, with an earnings call at 5:30 p.m. ET. Usually, results are shared on Tesla's Investor Relations page in a Shareholder Deck, but they might appear on a digital assets section this time.

Expectations:

Earnings Per Share (EPS): Analysts expect $0.77.

Revenue: Expected at $27.26 billion.

Election Impact:

The excitement around the election is linked to Elon Musk's relationship with President Trump, with hopes for a supportive regulatory environment for Tesla's self-driving and Cybercab projects. Musk has mentioned a 2026 target for Cybercab volume production, aiming for 2 million units per year, which investors will want confirmed tonight.

Challenges and Opportunities:

Despite the buzz around autonomous tech, Tesla's main EV business has seen slow growth. Q4 deliveries were 495,570 vehicles, just a 2% increase, leading to Tesla's first yearly drop in deliveries, down 1.1% to 1.79 million for 2024.

Competition, especially from China, and high interest rates are making it tough to keep demand up. Tesla has been using discounts; even the new Cybertruck got its first price cut, suggesting demand might be waning.

Positive Developments:

Cost reductions have helped, thanks to lower shipping costs and better Cybertruck production, pushing the automotive gross margin up by about 230 basis points to 17.0% in Q3, despite price cuts.

Operating expenses also dropped by 6% to $2.28 billion, reflecting a 10% workforce reduction announced in April.

Looking Ahead:

Everyone will be watching Tesla's delivery outlook for 2025. The company said it's on track to start producing a more affordable Model 2 in early 2025, which could excite investors if confirmed.

TECHS:

Tesla ended a four-quarter streak of missing earnings last quarter, beating expectations with a boost from better automotive gross margins. Since then, Tesla's stock jumped 82% and hit record highs, but it has since fallen by 11% from those peaks, likely due to fading post-election enthusiasm.

If you liked this content please click the ❤️ below and/or share this post.

SHAMLESS PLUGS

TOTALLY FREE Trading Packet!

Click here to get my packet that shows you how I traded $600 into $100K FOR FREE.

This packet will explain to you in depth how I trade and how I manage my risk.

I am happy to share this. Just use the code KPAKFRAUD at checkout and you will get it TOTALLY FREE. You will pay absolutely nothing.

Check out the latest episodes on my YouTube above.