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Tesla (TSLA) earnings Q3 2020

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Tesla CEO Elon Musk attends the Tesla Shanghai Gigafactory groundbreaking ceremony in Shanghai, China, January 7, 2019.

Aly Song | Reuters

Elon Musk’s electrical automobile and renewable vitality firm, Tesla, reviews third-quarter outcomes after the bell on Wednesday.

Here’s what Wall Street analysts expect, per a mean of analyst estimates compiled by Refinitiv:

  • Earnings per share (adjusted): 57 cents
  • Revenue: $8.36 billion

The firm already reported that it delivered 139,300 automobiles in the course of the quarter, a brand new file for Tesla.

At Tesla’s 2020 annual shareholder assembly and battery day presentation in September, CEO and co-founder Elon Musk stated that car deliveries in 2020 could be up 30% to 40% from final yr, implying a variety from 477,750 to 514,500 deliveries whole. (Earlier, the corporate stated it will comfortably exceed deliveries of 500,000 this yr, nevertheless it reined in expectations barely because the Covid-19 pandemic started to influence Tesla operations and auto gross sales.)

Tesla accomplished a five-for-one inventory cut up in the course of the quarter. When an organization splits its inventory, its whole worth does not change, nevertheless it helps get smaller buyers to purchase shares.

Ahead of the earnings name on Wednesday, institutional and retail buyers submitted inquiries to a web site referred to as that Tesla makes use of to choose questions for executives to reply in the course of the Q&A portion of its calls.

Among different issues, institutional buyers sought details about simply how a lot Tesla plans to spend on new factories over the subsequent decade. They had been additionally interested by Tesla’s pricing and margin targets, after the corporate lately minimize costs on its automobiles together with within the U.S. and China. Tesla is presently constructing new factories in Austin, Texas, and Brandenburg, Germany (exterior of Berlin).

In September, Musk and Senior Vice President of Energy Engineering, Drew Baglino additionally unveiled a brand new battery cell that the corporate designed itself, and plans to provide on their very own, beginning on pilot strains in Fremont, California, then at their different factories.

Institutional and retail buyers additionally needed to know when Tesla will roll out automobiles, and vitality storage merchandise, that embody the brand new battery cells. They additionally had questions on when Tesla’s automobiles can be able to functioning as driverless robotaxis, and when Tesla will supply its personal ride-hailing service.

Today, Tesla provides its prospects what it markets as a Full Self-Driving or “FSD” possibility, which it sells for $8,000. The FSD bundle is Tesla’s most superior driver help system, however it isn’t a completely autonomous one. Tesla acknowledges a portion of income from FSD gross sales with every new function replace that strikes it nearer to what the corporate defines as driverless functionality.

Musk has beforehand stated a Tesla car with FSD ought to be capable of drive itself coast to coast, or from a Tesla facility to a buyer’s house, in lieu of a standard supply association. It’s been about 4 years because the CEO promised a driverless car was on the best way.

During the third quarter, nonetheless, he stated that Tesla was rewriting its semi-autonomous system:

In October, he promised a beta software program replace for choose drivers who bought the corporate’s Full Self-Driving possibility. Tuesday after markets closed, Musk wrote the rollout would start slowly rolling out in a single day.

Retail buyers, lots of whom are enthusiastic Tesla house owners themselves, need executives to say whether or not Tesla will let prospects switch their FSD software program to their subsequent car, with or with out a switch price, a lot the best way that gaming or cellular corporations let prospects switch video games and apps once they improve to newer {hardware}.

This is breaking information. Please examine again for updates.

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