Tesla Q3 2024 Earnings Preview: Revenue Up, Profit Slips

Tesla (NASDAQ:TSLA) is set to report its third-quarter earnings on Wednesday, October 23, following a mixed reception to its recent robotaxi unveiling.

Analysts are forecasting higher revenue but a slight dip in profit for Tesla this quarter. According to Visible Alpha, Tesla’s revenue is expected to rise to $25.41 billion, up from $23.35 billion in the same quarter last year. Meanwhile, profit is projected to fall slightly to $1.68 billion, compared to $1.85 billion in Q3 2023.

The earnings per share (EPS) forecast is also modest, with analysts predicting 58 cents per share, down from 53 cents a year ago. These figures suggest that while Tesla's sales are growing, rising costs or other financial factors may be putting pressure on its bottom line.

Analysts Split on Tesla Stock

Wall Street is divided on Tesla’s stock outlook. Of the 19 analysts tracked by Visible Alpha, nine rate Tesla a "buy," seven call it a "hold," and three suggest a "sell." The average price target sits at $224.89, just slightly above Tesla’s closing price of $218.85 on Monday.

Tesla's recent stock performance has been mixed.

The company’s third-quarter vehicle deliveries surpassed expectations, which might typically boost the stock price. However, the lack of a strong rally left some market watchers disappointed. Analysts acknowledged the positive delivery numbers as a "step in the right direction" but were hoping for a bigger beat on expectations. Despite this, they maintain an "outperform" rating with a $300 price target, remaining confident in Tesla’s long-term prospects.

Robotaxi Event Disappoints Investors

Tesla’s stock has also been under pressure after its robotaxi event earlier this month.

The company introduced its Cybercab prototype and a larger vehicle called the Robovan. CEO Elon Musk hinted at progress in Tesla’s self-driving technology, suggesting it could soon gain regulatory approval—a key step toward deploying autonomous taxis.

Yet, the market reaction was lukewarm. Analysts pointed out the event lacked critical details. Questions remain about whether Tesla will sell its robotaxis directly to consumers or operate the fleet itself. Moreover, many were hoping for news on a cheaper Tesla model, which was not addressed.

JPMorgan, which has an "underweight" rating on Tesla and a $130 price target, criticized the event for its lack of substance. They argued that recent stock gains were driven more by the hype surrounding the Robotaxi event than by Tesla’s core business of electric vehicle sales or earnings.