Tesla TSLA Q3 2020 Earnings Preview & Outlook

Tesla TSLA Q3 2020 Earnings Preview & Outlook

Featured image: HyperChange/YouTube

On October 21, after the closing bell, Tesla (NASDAQ: TSLA) will release its Q3 2020 financial results. The Wall Street analyst consensus estimate would represent a 69.89% year-over-year decrease in the company's earnings. Revenue would be up 31.05% from the year-ago period. Here is how the company's reported EPS has stacked up against Wall Street analyst estimates in the past 4 quarters:

Gali from HyperChange/YouTube invites you to take a closer look at his forecasts for Tesla's financial results for Q3 2020.


Q3 2020 was very strong for Tesla in terms of deliveries. The company was able to deliver 139,300 vehicles, which is a huge amount and a record for Tesla. This is many more than the 97,000 delivered in Q3 2019, so obviously we should expect a proportionate increase in revenue.

Source: HyperChange/YouTube

Revenue Segment

Gali says it is clear that revenue will be a record high. He projects Tesla will grow revenue by more than 30% to ~ $8.3B, and produce about ~ $500M in operating income (excluding any impact from Elon's stock compensation package).

Source: HyperChange/YouTube

Revenue and Operating Income

8.321B versus $6.3B in Q3 2019 is a huge increase. In terms of Gross Profit, this also looks like a record of $1.62B. Car production is starting to scale, which means that gross margins will increase.

Gali envisions this to be Tesla's most profitable quarter in the company's history. The outlook for operating income is $568 million, up from $261 million in Q3 2019. It should be noted that revenue is significantly ahead of costs.

Source: HyperChange/YouTube

It is likely that, during the Q3 2020 Earnings Call, Tesla will reveal some financial details of what was announced at Battery Day. It will be very interesting to hear about the financial implications for the company with the development of new technology and the addition of battery production for each factory. Perhaps we will get some idea of ​​the volume of battery production at Kato Road, where battery cells for the Plaid Model S will be produced.


© 2020, Eva Fox. All rights reserved.


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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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