🚨WATCH THIS BEFORE TESLA REPORTS EARNINGS!

Summary

In this video, Ricky from Tech Talk Solutions analyzes Tesla’s stock ahead of its earnings report. He discusses expectations for Tesla's earnings per share and revenue, which are relatively flat compared to last year. Ricky highlights concerns about reduced demand due to public backlash against Elon Musk, high interest rates, and a lack of significant new incentives for car buyers. He also touches on Tesla’s broader goals in robotics and autonomous vehicles, emphasizing that much of the company’s future valuation depends on Musk's involvement. Ricky advises caution before the earnings report, suggesting potential upside if Tesla addresses investor concerns.

Takeaways

• 😀 Tesla is reporting earnings tomorrow after market close, with an expected earnings per share of $0.47, slightly lower than last year’s $0.49.
• 😀 Tesla's revenue expectation for Q1 2025 is $22.4 billion, which is almost identical to last year’s revenue of $22.26 billion.
• 😀 The stock is currently trading at $227.50 per share, and while it's oversold, there's a potential for further decline if earnings disappoint.
• 😀 The speaker suggests that the market’s current oversold condition could lead to a recovery, but they don't expect Tesla to perform well fundamentally in the short term.
• 😀 There is a significant amount of fear and backlash surrounding Tesla, primarily due to Elon Musk's controversies, which could affect consumer demand for Tesla vehicles this year.
• 😀 Interest rates are still high, limiting consumers’ ability to afford more expensive vehicles, including Teslas, despite new vehicle releases like refreshed Model Y and Model 3.
• 😀 The speaker emphasizes that Tesla is not just a car company but has verticals in robotics, full self-driving, and other innovations that could drive future growth.
• 😀 Elon Musk's involvement is seen as crucial for Tesla’s future success, and if Musk were to return to full control of the company, it could act as a major catalyst for Tesla's stock price.
• 😀 Despite the recent 50% drop in Tesla’s stock price, it still has a very high price-to-earnings (P/E) ratio of around 108, indicating it remains overvalued based on current fundamentals.
• 😀 The speaker believes that even a small positive catalyst, such as Musk confirming his return to Tesla, could lead to a significant rally in Tesla’s stock price.
• 😀 Ricky is cautiously optimistic about Tesla’s future but urges viewers to be cautious in the short term, as fundamental challenges persist and investor sentiment is uncertain.

Q & A

What is the expected earnings per share for Tesla in the upcoming report?

Tesla's expected earnings per share for the upcoming earnings report is around 47 cents per share.

How does Tesla's expected earnings compare to last year's Q1 earnings?

Tesla's expected earnings for Q1 2025 are slightly below last year's expectation of 49 cents per share, suggesting no significant year-over-year growth.

What is Tesla's expected revenue for the upcoming quarter?

Tesla's expected revenue for the upcoming quarter is $22.4 billion, which is slightly higher than last year's expectation of $22.26 billion.

Why is there skepticism about Tesla's sales growth this year?

There is skepticism about Tesla's sales growth this year due to ongoing backlash against Tesla and Elon Musk, as well as concerns about rising interest rates affecting consumer purchasing power.

How does the backlash against Tesla and Elon Musk impact consumer behavior?

The backlash, including negative perceptions about Elon Musk and his associations, may discourage potential customers from purchasing a Tesla, especially if they fear public backlash or feel the vehicle represents certain controversial views.

How have Tesla's interest rates and vehicle incentives impacted sales?

Tesla has not introduced any additional incentives like lower interest rates, which makes it harder for customers to justify purchasing expensive vehicles in the current economic climate, especially with high interest rates.

What verticals does Tesla have aside from selling cars, and why are they important?

Aside from its car sales, Tesla has verticals in robotics and full autonomy (self-driving technology). These are important because they could potentially drive Tesla’s value beyond being just a car manufacturer, positioning it as a tech company with future growth potential.

What has been Tesla's challenge in fulfilling its promises regarding robotics and autonomy?

Tesla has faced delays in delivering on promises related to its robotics and full self-driving (FSD) technologies, such as the Optimus robot and autonomous Tesla taxis. These developments have not yet materialized as expected.

Why is Elon Musk considered essential to Tesla's success?

Elon Musk is seen as a key figure in Tesla's future success because of his visionary role in driving the company's ambitious goals. Despite facing criticism, Musk's leadership is viewed as crucial for Tesla to maintain its market valuation and achieve its long-term objectives.

What could potentially cause Tesla's stock to skyrocket after the earnings report?

Tesla's stock could skyrocket if the company provides any positive news about Elon Musk's future involvement with Tesla, especially if he returns to take a more active role in the company’s operations, or if there is significant positive movement in its robotics or autonomy projects.