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3 Key Estimates for Tesla's (TSLA) Q1 Earnings Report

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Shares of Tesla (TSLA - Free Report) opened slightly higher on Tuesday, just one day before the electric vehicle giant is scheduled to release its first quarter financial results. Tesla will be under increased scrutiny after the bell Wednesday, so we are going to look at how the company is expected to perform in its three key business units.

Tesla and CEO Elon Musk have promised a lot. In fact, Musk’s ability to inspire investor confidence has helped propel the company, but with continued Model 3 production setbacks and mounting debt concerns, investors want to see stronger results.

Investors should be pleased to note that Tesla announced in early April that it produced a total of 34,494 vehicles during Q1, which represented a 40% surge from the fourth quarter. Tesla noted that this was “by far” its most productive quarter in company history. However, Tesla’s top and bottom lines are projected to be impacted by this growth in opposite ways.

Tesla’s quarterly revenues are expected to surge by 17.6% to reach $3.17 billion, based on our current Zacks Consensus Estimates. Meanwhile, Tesla is projected to report an adjusted quarterly loss of $3.37 per share, which would mark a 153.4% drop off from the year-prior period.

Now, let’s dive into Tesla’s individual business units in order to gain a better understanding of what to expect from Tesla’s Q1 earnings report.

In order to do so, we turn to our exclusive non-financial metrics consensus estimate file. The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.

Key Business Segment Estimates

Tesla currently breakdowns revenues into three basic categories: automotive sales and leasing, energy generation and storage, and services and other.

Based on our latest consensus estimates, analysts expect Tesla’s total quarterly automotive revenue to reach $2.73 billion. This would mark a 19% climb from the year-ago period when Tesla reported automotive revenue of $2.29 billion.

Last quarter, Tesla reported total automotive revenue of $2.70 billion, which marked a nearly 36% climb. Investors should also note that of the $2.73 billion projected automotive sales, only $348 million is expected to come from Tesla’s leasing business.

Moving on, Tesla’s energy generation and storage unit, which is made up of its solar panels, Powerwall, and solar roof businesses, is projected to pull in revenue of $392 million. This would represent 83% growth from the $214 million the company reported in the year-ago period. If Tesla reached our estimate, it would also mark a $94 million sequential surge.  

Used car sales are the main revenue driver for Tesla’s service and other revenue category. Tesla’s revenues are projected to climb by nearly 40% from $193 million in the year-ago period to $269 million in Q1. Last quarter, Tesla reported $288 million in this category, which marked an 81% surge from the year-prior period.

Tesla’s first quarter report could prove to be a pivotal one for the company, especially as the likes of General Motors (GM - Free Report) , Volkswagen , and Ford (F - Free Report) bolster their own electric vehicle futures.

Make sure to check back here for our full analysis of Tesla’s actual results after market close on Wednesday!

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