Tesla (TSLA) Q3 earnings preview: tough quarter
Tesla (TSLA) is about to release Q3 2023 financial results on Wednesday, October 18, after the markets close. As usual, a conference call and Q&A with Tesla’s management are scheduled after the results.
Here, we’ll take a look at what both the street and retail investors are expecting for the quarterly results.
Tesla Q3 2023 deliveries
As usual, Tesla already disclosed its Q3 vehicle delivery and production numbers, which drive the vast majority of the company’s revenue.
Earlier this month, Tesla confirmed that it delivered just over 435,000 electric vehicles during the third quarter of the year.
It’s the first time in a long time that Tesla didn’t break a delivery record.
Tesla also produced fewer vehicles at just over 430,000 units.
The automaker had warned about a lower quarter in terms of deliveries and production due to planned factory shutdowns for upgrades.
Delivery and production numbers are always slightly adjusted during earning results.
Tesla Q3 2023 revenue
For revenue, analysts generally have a pretty good idea of what to expect, thanks to the delivery numbers.
However, this year has been more difficult due to constant price cuts – making it harder to track Tesla’s revenue.
The Wall Street consensus for this quarter is $24.256 billion, and Estimize, the financial estimate crowdsourcing website, predicts a higher revenue of $24.420 billion.
Unsurprisingly, this would be significantly down from the nearly $25 billion in revenue Tesla delivered last quarter, but it is still a massive year-over-year increase from the $21.5 billion Tesla delivered during the same quarter last year.
Here are the predictions for Tesla’s revenue over the past two years, with Estimize predictions in blue, Wall Street consensus in gray, and actual results are in green:
Tesla Q3 2023 earnings
Tesla always attempts to be marginally profitable every quarter as it invests most of its money into growth, and it has been successful in doing so over the last two years now.
However, like revenues, it has been harder to estimate earnings this year with price cuts digging into Tesla’s industry-leading gross margins.
For Q3 2023, the Wall Street consensus is a gain of $0.73 per share, while Estimize’s prediction is higher with a profit of $0.78 per share.
But as you can see below, the range of Wall Street is quite broad as analysts are unsure what to expect.
Here are the earnings per share over the last two years, where Estimize predictions are in blue, Wall Street consensus is in gray, and actual results are in green:
Other expectations for the TSLA shareholder’s letter and analyst call
Amid declining prices to keep demand up, most shareholders are mostly concerned about Tesla’s ability to retain a high gross margin despite the lower prices.
It’s likely that Tesla will try to reassure shareholders on that front on Wednesday.
There’s been a growing effort among shareholders to convince Tesla to invest in advertising rather than cut prices. We have seen Tesla dip its toes in that lately. It would be interesting to see if Tesla can release some results of that effort and discuss the potential for a ramp-up.
During the conference call following the release of its earning results, Tesla takes crowdsourced questions from shareholders. Here are the top-voted ones right that are likely to be answered by management:
- How many Cybertruck deliveries do you anticipate for 2024?
- Can you provide a progress update on the 4680 Cell. Particularly progress towards performance improvements and cost savings outlined on battery day. Thank you!
- When do you expect Model 3 Highland to be available in the US?
- Could you please provide an update on (i) capacity expansion plans for the company’s factories in Berlin and Austin and (ii) the opening schedule of Gigafactory Mexico?
- Why was the price dropped on FSD if it is getting better and robotaxi is expected so soon?
In general, between the price drop and the lower deliveries, it should be a fairly top quarter for Tesla. However, the automaker has also lowered inventory during the quarter, which could make things more interesting.
We will see.
You can join us live on Electrek on Wednesday evening for intensive coverage of Tesla’s Q3 2023 financial results starting at around 4 p.m. ET for the results and through the evening for news coming out of the conference call and results.
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Germany’s largest offshore wind farm under construction, EnBW’s He Dreiht, just hit a big milestone: The first enormous turbine is now up in the North Sea.
He Dreiht – which means “it spins” in Low German – is using Vestas’s massive 15 megawatt (MW) turbines, the first project in the world to install them. Just one spin of one of the rotors can generate enough electricity to power four households for an entire day.
When it’s finished, He Dreiht will have 64 mega turbines cranking out 960 megawatts (MW) of clean power – enough to supply around 1.1 million homes. And it’s being built without any government subsidies.
EnBW, one of Germany’s major energy companies, has been working in offshore wind for more than 15 years, but He Dreiht is their biggest project yet. “It will play a key role in helping us to significantly grow our renewable energy output from 6.6 GW to over 10 GW by 2030,” said Michael Class, who heads up EnBW’s generation portfolio development.
The project is a win for Vestas, too. “With the installation of the first V236-15.0 MW, we have reached an important milestone for both the He Dreiht project and our offshore ramp-up, which helps Germany build a more secure, affordable, and sustainable energy system,” said Nils de Baar, president of Vestas Northern & Central Europe.
He Dreiht is located about 85 kilometers (53 miles) northwest of Borkum and 110 kilometers (68 miles) west of Helgoland. At peak times, more than 500 workers will be out at sea building the farm, using a fleet of more than 60 ships. EnBW’s offshore team in Hamburg is running the show.
The installation process is a major operation. The 64 foundations were already set in the seabed last year. Parts for the turbines are loaded onto the installation vessel Wind Orca in Esbjerg, Denmark, and shipped out in a 12-hour journey to the construction site. From there, the turbines are lifted into place. Meanwhile, crews are also working on internal wind farm cabling.
A partner consortium made up of Allianz Capital Partners, AIP, and Norges Bank Investment Management owns 49.9% of the shares in He Dreiht.
Read more: Trump admin halts $5 billion NY offshore wind project mid-build
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Tesla has released a quick update about its Tesla Semi factory in Nevada. It says that it is on track for volume production of the electric semi truck in 2026.
The Tesla Semi was first scheduled to go into production in 2019, but it has faced numerous delays.
Now, it appears that there is finally some momentum to bring it to volume production.
For the last two years, Tesla has been working to build a new factory next to Gigafactory Nevada, where it builds the battery packs and drive units for most of its electric vehicles built in North America.
Today, Tesla released a “progress update on the factory, confirming that it finished building and it’s now working on deploying the production lines:
Tesla had previously mentioned aiming for volume production by 2025, but it is now only talking about starting production toward the end of the year and ramping up next year.
The automaker reiterated its planned production capacity of 50,000 units.
We recently reported that an early Tesla Semi customer, Ryder, stated that the electric truck program is experiencing more delays and a price increase described as “dramatic.”
They now expect to take deliveries of their first trucks later in 2026 and said that the price has increased “dramatically,” leading them to scale back their pilot program from 42 to 18 Tesla Semi trucks.
When originally unveiling the Tesla Semi in 2017, the automaker mentioned prices of $150,000 for a 300-mile range truck and $180,000 for the 500-mile version. Tesla also took orders for a “Founder’s Series Semi” at $200,000.
However, Tesla didn’t update the prices when launching the “production version” of the truck in late 2022. Price increases have been speculated, but the company has never confirmed them.
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Vietnamese solar panel maker Boviet Solar just opened the doors to its first US factory — a huge new PV module plant in Greenville, North Carolina.
The company dropped $294 million into the state-of-the-art facility, which will pump out Boviet’s Gamma Series monofacial and Vega Series bifacial solar panels. They’re using advanced PERC and N-Type solar cell tech, which basically means these panels are built to deliver higher efficiency and better performance across residential, commercial, industrial, and utility-scale projects.
The Greenville factory’s first phase is now online with an annual PV module output capacity of 2 gigawatts (GW). For Phase 2, which is scheduled to come online in the second half of 2026, Boviet will invest another $100 million to add 600,000 square feet and ramp up to another 2 GW. It will make high-efficiency solar cells.
Once both phases are complete, Boviet’s campus will cover more than 1 million square feet of manufacturing and R&D space. It’s one of the biggest clean energy manufacturing projects North Carolina has ever seen.
The jobs impact is significant, too. The first phase will create 460 skilled local jobs. Phase 2 is expected to add another 908, bringing the total to over 1,300 direct jobs, plus nearly 2,000 more indirect jobs across the region. That’s good news for Pitt County’s economy, real estate market, and workforce training programs.
“This facility is not just creating jobs, but creating opportunity, innovation, and a stronger foundation for eastern North Carolina,” said Senator Kandie Smith. Governor Josh Stein added that Boviet Solar’s move shows how North Carolina is leading the way in clean energy growth.
Read more: Thomas Built Buses debuts its next-gen electric school bus
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