What to expect at Tesla’s earnings call on Wednesday

Tesla S3XY lineup

For Tesla fans and critics, Wednesday can’t come soon enough as the automaker is scheduled to release one of its most important quarterly financial results yet.

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The second quarter was an interesting one for Tesla. The coronavirus pandemic forced the shutdown of its Fremont factory for two months. The effects of that closure were somewhat offset by increased production at its Giga Shanghai facility, which is rapidly nearing completion of its second phase.

Then there was the introduction of the Model Y, which was was released at the tail end of Q1 in the US. According to Tesla’s Q1 earnings report, they were able to manufacture more Model Y’s in the first quarter of production than in the first two quarters of production of the Model 3. Not only that, they also exceed first quarter production of the Model 3 at Giga Shanghai.

Taking everything into account, Tesla was still able to beat analyst expectations and deliver nearly 90,000 vehicles in Q2 2020.

Despite the strong numbers, many Wall Street analysts are expecting Tesla (TSLA) to post a loss during the call on Wednesday. According to FactSet, the consensus call is for Tesla to post an adjusted loss of 14 cents per share on sales $5.15 billion.

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However, according to one analyst from Wedbush Securities, Dan Ives, don’t be surprised to see Tesla post their fourth consecutive quarterly profit.

In a note to investors on Monday, Ives said based on his analysis, Tesla will be able to beat skeptics on Wednesday.

While Street numbers are all over the map and looking for red ink this quarter, we are modeling profitability with the 90k delivery number.”

Ives also noted that along with the fourth consecutive profit, Tesla is all but guaranteed a spot in the S&P 500 index – “[inclusion] is already considered a fait accompli among the bulls.

Along with the all important profitability figures, Tesla is also expected to provide updates on a wide variety of topics, including sales in China, Giga Shanghai production (including Model Y), Model Y production ramp, and sales outlook for the remainder of the year.

How to watch Tesla Q2 2020 Financial Results

What: Date of Tesla Q2 2020 Financial Results and Q&A Webcast
When: Wednesday, July 22, 2020
Time: 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time
Q2 2020 Update: http://ir.tesla.com
Webcast: http://ir.tesla.com (live and replay)

Tesla (TSLA) is currently trading at over $1,618 per share at the time of publication, up nearly 8% on the day.

Tesla shares July 20 2020

 

 

h/t [MarketWatch]

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