Tesla Earnings: Everything You Need To Know

Hello guys, this is a follow up on the post we shared yesterday titled: “Tomorrow Is The Most Important Day For Tesla Investors In 2020″. That tomorrow is now Today!.

That post included 4 very important things to know before Tesla reports the 2020 Q2 earnings. Which includes but not limited to

  1. China
  2. Model Y
  3. Guidance
  4. Cash At Hand

Once the market closes today and Tesla reports Q2 earnings, those that cannot take the heat will have to leave the kitchen. So what has changed since sharing that post? well, a lot has changed.

Yesterday in pre-market, Tesla Inc!. Stock was trading around $1690, but when market opened, it opened at $1,639.93, but unfortunately closed at $1,568.36, -$74.64 (-4.54%).

The daily range was a minimum of $1,558.00 and a maximum of $1,675.00.

What Are Analysts Saying About Tesla’s Earnings?

Tesla Stock analysts are super divided, as the majority now holds a HOLD Rating compared to those holding a SELL Rating, and just 6 of them holding a Buy Rating.

According to Tipranks, only 6 analysts have a BUY rating on Tesla, 11 analysts have HOLD ratings, and 10 analysts have a SELL rating, which simply means they have a combined price target of $969.42, a 38.19% downside target if Tesla Stock should decide to dance to the tune of their music.

Why Did Tesla Price Fell Almost 5% Yesterday?

Tesla bull and JMP Securities analyst Joseph Osha downgraded Tesla stock to Hold Tuesday.

As shared by Barrons, Osha was an early $1,000-plus price target setter for Tesla shares—going to four digits in March when Tesla shares were below $800. In July, he raised his price target to $1,500 a share when Tesla stock was below $1,400. Instead of raising the price target again ahead of Tesla’s second-quarter, he decided to give a HOLD!.


Year-to-date, Tesla is up 286% after a meteoric rally that has made the CEO the 7th Richest Man In The World, and the electric vehicle giant World Most Valuable Car Company.

Yesterday Forbes reported that Elon Musk’s meteoric rise up the Forbes Billionaire List has continued this month, as the CEO of the most talked-about company of our time ascended past popular billionaires such as Warren Buffett and Steve Ballmer. As of Monday afternoon, Musk’s net worth surpassed $74 billion, meaning he is now the fifth-richest person on the planet.

According to Bloomberg, these are the main results expected in Tesla’s Q2 report today:

  • Revenue: $5.2 billion vs. $6.35 billion Y/Y
  • Adjusted loss per share: 15 cents vs. $1.12 Y/Y
  • GAAP net loss: $285.2 million vs. $408.33 million Y/Y

According to Zacks Consensus estimates, TSLA is expected to report an EPS of -$0.49 and its worst sales in 5 quarters. If analysts are right, this stock has sizable downside potential.

Investors reported that there were 6,244 calls traded on Tesla stock at the 3,500 strikes expiring July 24.

The Most Important Part

Tesla MUST beat GAAP earnings estimates to meet the eligibility criteria for inclusion in the S&P 500. Tesla Stock already meets the market-valuation and liquidity requirements to be eligible for inclusion in the S&P 500, but Tesla also needs to report positive Q2 GAAP earnings today.

If Tesla reports positive Q2 GAAP earnings today, it would be the fourth consecutive quarter of profitability that the company is reporting. At the moment, analysts estimate a GAAP loss amounting to -$0.72 per share for the quarter.

If Tesla beat it! the sky won’t be the limit but Mars.

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