Tesla’s profits are today. Here’s what to expect.

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Raindrops are visible next to the Tesla logo

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Electric vehicle manufacturer


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publishes its results after the close of trading on Wednesday. Tesla stock has been rising – a lot – lately, raising the bar for investor expectations and raising the odds of stock volatility after earnings. Here’s what to expect when Tesla reports numbers, along with recent history.

Wall Street expects Tesla (ticker: TSLA) to earn around $ 1.67 per share out of $ 13.9 billion. Estimates have risen since the company reported better-than-expected vehicle deliveries in the third quarter. A month ago, analysts were forecasting earnings per share of $ 1.45 on revenue of $ 13.1 billion.

Tesla delivered around 241,000 vehicles in the third quarter, up from around 201,000 in the second quarter. Tesla reported earnings per share of $ 1.45 on $ 12 billion in second-quarter sales.

In publishing the results, analysts and investors will pay particular attention to gross profit margins. Tesla sold about 12,000 additional cars in China from its Shanghai plant during the third quarter. This should help increase margins. Locally made cars tend to be more profitable. But the global semiconductor shortage and rising shipping costs have the potential to hurt margins. For now, Wall Street expects gross profit margins to be, for the most part, flat with a second quarter at around 24%.

On the earnings conference call, which begins at 5:30 p.m. EST, analysts and investors will want to know how the chip shortage is progressing and when relief could come. They will also want to hear about the ramp-up of new capacity in Germany and Texas, as well as the outlook for deliveries in Q4 and 2022.

Tesla is also rolling out new versions of the company’s autonomous driving software. Investors will want to know how the new features are performing.

CEO Elon Musk, however, might not weigh in. He said on the company’s second quarter conference call that he would ignore them in the future. No one is sure.

Tesla stock is up about 31% on Wednesday since the company released second-quarter figures in late July. The


S&P 500

and


Dow Jones Industrial Average

are up about 2% and 1%, respectively, over the same period.

It’s a fairly recent run for Tesla’s stock. Tesla Bulls are hoping this will continue after profits.

Write to Al Root at [email protected]

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