Tesla’s third-quarter earnings release date is on the calendar. Read on to learn what metrics to watch, what investors and analysts are predicting for Tesla’s quarterly results, how the stock price may react and where to access the EV maker’s earnings call.

Tesla Stock Key Metrics

Key quarterly metrics for Tesla include production and delivery numbers, revenue growth, gross margin, operating income and non-GAAP diluted EPS.

Production And delivery

Tesla routinely announces production and delivery performance a few days after the quarter closes, well ahead of its earnings report. For the third quarter of 2023, the production and delivery numbers hit the wires and Tesla’s website on October 2.

Production totaled 430,488 units and deliveries were 435,059 units. The delivery total marks a 6.7% decline from the prior quarter, when the EV maker handed over 466,140 units.

The delivery slowdown was partly related to production. Tesla CEO Elon Musk had previously warned that production would dip in the quarter due to factory shutdowns for planned upgrades.

Unfortunately, Wall Street had been too optimistic about those production upgrades and their effect on sales. On average, analysts had expected Tesla to deliver 455,000 units in the quarter. The company missed that mark by about 20,000 units or 4.4%.

Lower-than-expected production and delivery numbers signal soft financial results for the quarter.

Revenue

Tesla is a growth-oriented company, so investors are focused on the EV maker’s topline performance. Since the third quarter of 2020, Tesla has turned in quarter-over-quarter revenue growth ranging from about 24% to 98%.

Gross Margin

The EV maker has seen some deterioration of its gross margin recently. Price cuts to retain market share are largely to blame. That strategy is only possible because Tesla has historically had strong margins relative to other automakers.

Investors are watching gross margin over time to ensure that Tesla can retain both the margin advantage and its market share. These two qualities make it one of the best EV stocks to own.

Operating Margin

Operating margin performance demonstrates how well Tesla is managing production expenses plus indirect costs.

In January 2023, via the fourth quarter Tesla stock earnings release, Musk noted that the company’s average selling prices had been declining for years. Despite that trend, Tesla had substantially improved its operating margin through cost control efforts. Musk also vowed to ramp up cost reductions this year.

Investors expect Tesla to maintain that trend, holding or improving its operating margin.

Non-GAAP Diluted EPS

Non-GAAP diluted EPS is a standard indication of a company’s operating performance. The adjustments from the GAAP figure to the non-GAAP one generally exclude items that aren’t regular, repeatable events.

Since the third quarter of 2021, Tesla’s non-GAAP diluted EPS has ranged from $0.62 per share to $1.19 per share. These figures are adjusted for the company’s 3-for-1 stock split that was implemented in August, 2022.

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How Was Tesla’s Previous Earnings?

For the second quarter of 2023, Tesla reported record-high quarterly revenue but a disappointing operating margin of 9.6%. The company also spent $172 million more on research and development costs vs. the prior quarter.

Tesla’s shareholder presentation attributed the margin decline to lower average sales prices, costs related to production of the 4680 battery cells that Tesla designed and operating expenses associated with Cybertruck and AI initiatives.

Despite the miss on margin, Tesla did beat the consensus estimate for earnings. Adjusted EPS was $0.91 per share, $0.12 higher than Wall Street expectations.

What Day And Time Does Tesla Report Earnings Next?

Tesla will report earnings and financial results for the third quarter of 2023 on Wednesday, October 18, 2023. An overview of results will post to Tesla’s Investor Relations website after the market closes at 4:00 p.m. Eastern Time (ET). At 5:30 p.m. ET, Tesla will host a live webcast to share prepared remarks and answer analysts’ questions.

Tesla Stock Earnings Forecast

Wall Street expectations for Tesla’s third quarter EPS range from $0.60 to $1.02. The consensus is $0.75. This would equate to a year-over-year EPS decline of $0.30 or 29%.

Notably, analysts lowered its expectations after Tesla shared the disappointing production and delivery figures in early October. Ninety days ago, the consensus EPS estimate for Tesla’s third quarter was $0.88.

While analysts have lowered their expectations, investors have pushed TSLA higher. The stock closed at $251.60 on October 2. Four days later, TSLA ended its trading day at $260.53. Investors are already looking past Tesla’s short-term headwinds—namely, margin pressure, lower production numbers and high interest rates that are affecting auto sales.

Still, Tesla investors are a fickle bunch. They responded negatively to a 10.9% year-over-year decline in Tesla’s China-made cars in September, as reported by the China Passenger Car Association. The stock will take another hit if Tesla misses Wall Street’s updated expectations or reports another margin decline.

Investors will also demand specifics on the Cybertruck launch and an affirmation of Tesla’s 2023 delivery outlook in the upcoming earnings release.

The company had previously predicted it would deliver 1.8 million units this year. Hitting that mark requires the hand-off of nearly 476,000 vehicles in the fourth quarter. That number is possible, but only if the Cybertruck launches successfully and spurs interest in other Tesla models. For context, deliveries in last year’s fourth quarter totaled 405,278.

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Does Tesla Stock Usually Go Up After Earnings

Looking at the last four Tesla stock earnings reports, TSLA has gone down three times and up once within 24 hours of the earnings release. The three declines ranged from 6.7% to 9.8%, while the increase was 11%.

Interestingly, Tesla beat or met Wall Street’s updated EPS expectations in all four quarters. (Expectations are “updated” because analysts typically revise them once Tesla publishes its production and delivery report.) The stock only lifted after the fourth quarter, 2022 earnings release—when Tesla’s reported $1.91 EPS grew 40% from the prior-year quarter.

Investors’ immediate response to Tesla earnings doesn’t always reflect what happens later, however. As an example, TSLA dipped to $153.75 after its first quarter, 2023 earnings release. But a month later, the stock found its stride and rose to $293.34 before dipping again after second-quarter earnings were announced.

Bottom Line

TSLA is a volatile stock. Investors respond dramatically to any Tesla-related headline, whether the subject is financial results, production and product launches or market share. If the EV maker misses expectations in any one of these areas, shareholders are in for a wild ride after the company’s earnings release.

If Tesla’s volatility feels too risky for your investing style, see this Microsoft stock outlook. Analysts are largely bullish on MicrosoftMSFT ahead of its earnings release on October 24.

TSLA Earnings FAQs

When Does Tesla Report Its Upcoming Earnings?

Tesla will report its third quarter, 2023 financial results on Wednesday, October 18. The earnings release will be posted to Tesla’s Investor Relations website after the market closes at 4:00 p.m. ET.

Tesla will also host a live webcast to discuss the quarterly business results at 5:30 p.m. ET, also on October 18.

Where Does Tesla Release Its Earnings?

Telsa releases its earnings results on the company’s Investor Relations website. The earnings webcast is also accessible from the same URL.

If you miss the live webcast, you can access a recording of the event here. The recording should be available about two hours after the session ends.

Can You Listen Or Watch Tesla’s Earnings Call?

You can listen to Tesla’s earnings webcast. Access the live event or a recording here.

What Is TSLA Stock’s Current Price Target?

TSLA’s current price target is $240.57. That represents about 5% downside from the stock’s current trading price of just over $254.

For a longer view, see Tesla Stock Price Prediction for 2025.

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From healthcare to retail, finance to education… AI is the catalyst for innovation across major industries. Ignite your portfolio—get the names of the top companies driving the AI revolution in this exclusive Forbes report, 12 Top AI Stocks to Buy Now.