Tesla Q4 2019 earnings: What Wall St expects for TSLA’s historic quarter

Tesla stock (NASDAQ:TSLA) is about to be taken to the fire once more, with the electric car maker set to report its fourth-quarter 2019 earnings tomorrow after the day’s trading session. Amidst Tesla’s meteoric rise in the past months, Wall Street has issued its predictions for the company, and how well it did on its final push in 2019. 

The electric car maker is heading towards its Q4 2019 earnings call with record production and delivery figures. Tesla was able to deliver 112,000 vehicles between October and December 2019, while producing over 104,000 cars in the same period. This completely overtakes its previous record of 97,000 deliveries and production of 96,000 vehicles, which were recorded in Q3 2019.

Revenue 

With this in mind, Wall Street expects Tesla to report revenue of $7.047 billion. Estimize, a crowdsourcing platform that aggregates estimates from Wall Street analysts, buy-side analysts, company executives, academics, fund managers, among others, expect Tesla to report revenue of $7.158 billion. These estimates are notably higher than the $6.3 billion in revenue that Tesla reported in its blockbuster third-quarter. 

Earnings 

Unlike the previous quarter, Wall Street actually expects Tesla to report a $1.62 per share gain for Q4 2019. Estimize’s consensus is a bit more optimistic at $1.79 per share. These are more positive compared to the estimates in the third quarter when 33 analysts polled by FactSet expected Tesla to report an adjusted loss of $0.46 per share. 

TSLA stock so far

Following a disappointing second quarter in 2019, which caused the stock to drop to over two-year lows, TSLA stock recovered and started a record recovery that began following the release of the company’s third-quarter earnings. In Q4 alone, Tesla showed gains of 90.2% over the trailing 12 months, far outpacing the S&P 500, which showed gains of 23.7% in the same period. Today, TSLA shares are at record levels, trading above the $550 per share range. 

Thanks to its meteoric rise, Tesla has overtaken iconic, veteran automaker Volkswagen with its over $100 billion valuation, becoming the 2nd largest automaker in the world by market cap. This was an unprecedented accomplishment for the 17-year-old company, as VW is arguably one of the most established carmakers in the industry, with over 8 decades of experience. The company’s fourth-quarter results will likely determine if Tesla can keep this momentum going. If it can, then its disruption of the auto industry will probably end up accelerating significantly this year.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

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