Will Tesla’s Q4 Financial Results Live Up To Its Production Results?

2020 was a wild year for California-based automaker, Tesla. While the whole world struggled with the ongoing coronavirus pandemic, Tesla managed to become not only the most valuable automaker, but the most valuable company in the world. Furthermore, the EV giant was able to raise billions of dollars through several variables including a stock spilt and its integration into the S&P500 (TSLA).

Tesla has already released its recording breaking delivery and production numbers for Q4 2020. Between October and December 2020, Tesla managed to deliver 180,570 units and produce 179,757. Now the automaker is just a day away from announcing its Q4 2020 and full-year financial results. Tesla is expected to release the results after the market closes tomorrow, January 27. After the release, Tesla is expected to hold conference call and a Q&A with Tesla management.

With Tesla’s record breaking delivery and production during the months of Q4 2020, Wall Street analysts have consistently raised their price targets for the company, realizing that it isn’t smart to bet against the EV giant. Considering Tesla’s vehicle deliveries drive most of its earnings results, Wall Street’s revenue expectations for Tesla during the fourth quarter has seen a significant increase since the beginning of 2021, standing now at $10.473 billion. Furthermore, financial estimate crowdsourcing website, Estimize, predicts an even higher revenue of $10.656 billion.

See the quarterly expectations for Tesla’s revenue over the past two years in the chart below. Estimize predictions are in blue, Wall Street consensus are in gray, and actual quarter results are in green:

Both predictions show gains for Tesla with the Wall Street consensus adding $1.04 per share, while Estimize’s prediction shows a slightly larger gain of $1.08 per share. Compared to earning per share seen over the last two years the increase is obvious: 

For now, we will just have to wait until Tesla’s Q4 2020 results are released and see if Tesla can continue on its trajectory of success in the new year.

Leave a Reply

Your email address will not be published. Required fields are marked *