Tesla shares are currently trading at around $367. Tomorrow, October 21, promises to be a critical day for the company, as its third-quarter (Q3) financial results will be released after the market closes. Strong operational performance could lay the groundwork for a positive outlook. However, the stock will also hinge on the firm’s profitability and management’s guidance.
What happened in Q3? Let’s take a quick look at the full picture. From July to September, Tesla produced over 464,000 vehicles and sold about 486,500 cars. Deliveries rose by 2% year-on-year, surpassing analysts’ projections of 469,000. The energy segment also showed sturdy growth: Tesla deployed storage systems with a total capacity of 13.7 gigawatt-hours.
According to the consensus forecast, the company’s revenue is expected to reach approximately $28.34 billion, with an adjusted net profit of $0.45 per share. Particular attention will be focused on cash flow: projected capital expenditures stand at around $7.77 billion, while free cash flows could be negative—roughly -$4.51 billion. Consequently, commentary on expenses, profitability, and the development of the robotaxi and the Optimus project may be just as significant as the headline revenue and net profit figures.
Market sentiment, however, remains mixed. On Monday, October 19, the S&P 500 increased by around 0.4%, while the Nasdaq climbed 1.1%. The surge was primarily driven by large tech companies, which significantly outperformed the broader index. This creates potential for further gains in Tesla shares, with a target price of $430.
The final recommendation:
— Buy Tesla shares at the current price of $367, aiming for $430 within a couple of weeks.
— Place Stop Loss at $350 for better risk management if the market moves in the opposite direction.
This content is for informational purposes only and is not intended to be investing advice.
