Tesla Q3 Earnings Preview: Key Metrics, Challenges, and What to Watch

Tesla is set to release its third-quarter earnings after the market closes on Wednesday. Key expectations include a projected profit of $2 billion (49 cents per share), slightly lower than last year's $2.32 billion (53 cents per share).

Adjusted earnings, excluding one-time items, are forecast at 60 cents per share. Revenue is anticipated to rise to $25.47 billion, compared to $23.35 billion in the same period last year.

The company's stock declined 13% during the quarter, recently trading at $215.83.

Key areas to watch include:

1. Consumer Demand: Tesla faces challenges with slowing demand for its electric vehicles (EVs), while competitors offer discounted alternatives. Analysts are keen to see if Tesla can achieve its target of 1.8 million deliveries for FY24.

2. Musk's AI Strategy: Investors are seeking clarity on the timeline for Tesla's full self-driving software and Cybercab plans after feeling underwhelmed by previous announcements.

3. Margins: Tesla's margins are expected to recover, with price cuts largely behind them, and stronger demand from China helping offset weaker sales in other regions. Investors will be monitoring for signs of global demand stabilization.