Tesla will post its financial results for the second quarter of 2024 after market close on Tuesday, July 23, 2024. Ahead of the report, analysts revised their forecasts and their expectations became more positive.
Analysts at Baird reiterated their “outperform” rating on Tesla shares, pointing to strong performance ahead of the report. The company wrote that it was buying shares of the manufacturer. The positive outlook is driven by more stable pricing conditions during the quarter, higher revenue from fully autonomous driving, and strong growth in the energy segment as factors supporting the strong quarter.
Baird analysts are particularly interested in the upcoming Robotaxi event, which they believe will be a positive catalyst for Tesla shares. They expect the event to provide greater clarity on the financial implications of Robotaxi’s product, and a basis for modeling its potential.
Baird noted that moving the event from August 8 to October increases the likelihood that Tesla will unveil a new vehicle or vehicles on the new platform, and recent comments from CEO Elon Musk appear to support that view. The timing of the presentation will not disrupt the planned start of production in early 2025. Baird models for 25,000 units of the next-generation cars in 2025.
The analyst firm expects Tesla to beat second-quarter EPS and corporate gross profit estimates. They forecast EPS to come in at $0.62 per share, above the consensus estimate of $0.61. The gross margin is expected to be 18.5%, compared to the consensus estimate of 17.5%.
In turn, Global Equities Research analysts raised their price target for Tesla shares from $340 to $400. They indicated that the company is now experiencing increased demand driven by a $7,500 point-of-sale EV credit.
The firm wrote that demand for Tesla vehicles has been “extremely strong” over the past two weekends as a $7,500 price cut on those vehicles led to a “steady influx of customers.”
Global Equities Research noted that Tesla has simplified the ordering process by developing its own software. This streamlines the entire workflow from order placement to point-of-sale, credit processing, vehicle price reduction, and integration with the IRA. According to the firm’s research, dealerships selling EVs from Tesla competitors first raise prices and then lower them by the amount of EV credits at the point of sale.
“Customers do not appreciate these dealers’ gimmicks,” the report noted.
