Tesla Deliveries to Set New High in Q1, But Analysts Predict Lower Earnings. Hello everyone and welcome to our talk show Torque News, where I talk about Tesla and electric vehicles daily! Today I'll be discussing Tesla, the electric vehicle giant, and what analysts are saying about their expected record-setting deliveries in the first quarter of 2023.
According to reports (IBD), Tesla deliveries are expected to reach around 430,000 vehicles this quarter, a 39% increase compared to the same period last year. If Tesla manages to beat these estimates, analysts predict that their stock could receive a bump.
Barclays analyst Dan Levy believes that Tesla will have a "modest" deliveries beat, but concerns have built around the pace of deliveries due to weakening demand signals. However, Levy believes that the pace of production likely implies some upside, which could lead to better-than-expected results.
If Tesla's deliveries are better than expected, it could be a catalyst for the stock as expectations have come down amid signs of softening demand. However, despite the potential for a stock bump, analysts predict that Tesla's earnings in 2023 will shrink compared to 2022, with Wall Street predicting a 3% slide in earnings per share.
Tesla's lowest-priced vehicle, the Model 3, may also lose eligibility for the new $7,500 U.S. EV tax credit at the end of March. This is because the battery for the vehicle comes from China.
Despite these challenges, Tesla sold 140,453 China-made vehicles in the first two months of the year, with the global EV giant exporting 57% of those vehicles to Europe and elsewhere.
Tesla's deliveries hit a record 405,278 in the fourth quarter of 2022, jumping 31% compared to a year earlier and nearly 18% compared to the third quarter's deliveries. Deliveries swelled 40% to 1,313,851 in 2022, but this was well below the company's 50% increase goal.
As of March 13, Tesla's stock has gained around 10%, even as other financial institutions are facing failures, which has led to worries of broader financial instability. However, the stock has lost around 6.7% on the month and is still forging a bottoming base, below the 200-day line.
Despite this, Moody's Investors Service upgraded Tesla's credit rating by one notch to Baa3, giving it investment-grade status from a prior junk rating. S&P Global did the same in October. Moody's predicts that Tesla will remain one of the foremost manufacturers of battery electric vehicles with an expanding global presence and very high profitability.
So, while analysts predict that Tesla's earnings will shrink in 2023, the expected record-setting deliveries this quarter could provide a bump for their stock. It'll be interesting to see how the EV giant performs and if they can continue to remain a major player in the electric vehicle market. Thanks for tuning in, and we'll see you next time!
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.