FREE Shipping in USA

   |    Subscribe our Newsletter

Your Cart is Empty

Tesla (TSLA) May Surpass EPS and Revenue Estimates for Q4 2019, Says Morgan Stanley

by Claribelle Deveza January 28, 2020


Morgan Stanley believes Tesla's Q4 EPS and revenue estimates will surpass analysts' predictions in the upcoming fourth-quarter earnings call. Thus far, Morgan Stanley has tried to remain impartial towards Tesla stock, holding both a bear and bull position. However, the investment bank and financial services company seem to be in favor of TSLA in the next earnings call.

In a note to its clients, Morgan Stanley wrote that the company expected Tesla to report a Q4 EPS of $0.88 on a GAAP basis. According to the compilations of analysts' estimates by Captial IQ, the common consensus is that the EV automaker will report a Q4 earnings per share of $0.84.


Credit: Tesla

The investment bank and financial services company also predicted that Tesla would report a US$7.31 billion revenue in the next earnings call. Capital IQ stated that most analysts estimated Tesla's revenue to be US$7.05 billion.

Morgan Stanley maintained its positive outlook for Tesla in 2020. The investment bank stated in its note that the EV automaker could deliver up to 498,000 units in 2020. MT Newswire pointed out that Morgan Stanley's delivery estimates for 2020 were 36 percent higher year-over-year. The financial services company goes on further to say that Tesla could reach a full-year unit volume of 500k to 550k.

Morgan Stanley also accounted for Tesla's growing number of Gigafactories. It believes that the EV tech company will improve cost-efficiency in its factory in Fremont and ramp production in Gigafactory 3 in Shanghai, China. The investment bank expects Tesla to achieve its first full year of GAAP profitability, partly due to its GF3 ramp.

It also recognized the importance of Gigafactory 4 in Brandenburg. Morgan Stanley thinks that GF4 is essential for Tesla to maintain increasing sales volume in 2021.

Credit: Teslacn/Twitter

Just a couple weeks ago, Morgan Stanley downgraded Tesla for the first time in seven years, reported Business Insider. The downgrade seemed to be in response to TSLA's 100 percent gain after rallying to trade at over US$500 per share.

Near-term momentum and sentiment around the stock is admittedly very strong, but we ultimately question the sustainability of the momentum," wrote Adam Jonas of Morgan Stanley wrote in a note.

Morgan Stanley's recent prediction seems to be a reversal on its position after the downgrade. Only time will tell whether the investment bank will maintain its positivity for TSLA.

Featured Image Credit: Tesla

Claribelle Deveza
Claribelle Deveza

Longtime writer and news/book editor. Writing about Tesla allows me to contribute something good to the world, while doing something I love.

Also in Tesmanian Blog

SpaceX conducts successful deployment of Starlink satellites, misses 50th rocket booster landing
SpaceX conducts successful deployment of Starlink satellites, misses 50th rocket booster landing

by Evelyn Arevalo February 17, 2020 0 Comments

Read More
Tesla Autopilot Saves 8 People After 2 Model X Are Hit By Falling Tree: 'Elon Musk Did Us Proud'

by Claribelle Deveza February 17, 2020 0 Comments

Tesla Autopilot saved the lives of people in two different Model X SUVs that were involved in the same car incident. When it comes to Tesla Autopilot, there are usually two opinions: a) it’s dangerous and b) it's revolutionary. However, for the people driving their Model Xs during Storm Dennis in Dorset, Tesla Autopilot was nothing but miraculous. 
Read More
Tesla's Hardware 3 is 6 years ahead of all automakers
Tesla's Hardware 3 is 6 years ahead of all automakers

by Eva Fox February 17, 2020 0 Comments

Nikkei Business Publications, a Japanese media outlet, conducted a teardown Model 3. The data obtained as a result was very impressive. Most of all, the car’s built-in central control unit Tesla, or “Full Self-Driving computer”, stands out. This technology is the company's largest weapon in the growing electric car market. An engineer at a major Japanese automaker, after checking the computer, said they couldn’t do the same.
Read More

Previous  / Next