On Wednesday, after the market closes,
TSLA
is set to report its financial results for the third quarter of fiscal year 2023. Analysts are anticipating a revenue growth rate of 6.3% year-over-year, which would be the lowest since the -4.9% year-over-year growth experienced in the second quarter of fiscal year 2020 during the pandemic. The earnings per share (EPS) is expected to be $0.53, reflecting a decline of 44% compared to the previous year. This decrease in EPS can be attributed to increased competition, particularly in terms of pricing.
In recent developments, BYD has surpassed Tesla in terms of deliveries, thus becoming the largest battery electric vehicle (EV) manufacturer in the world. Furthermore, BYD is making progress in the higher-priced segment that Tesla has traditionally dominated.
Tesla had previously made a commitment to investors, promising 50% annualized growth for a period of 10 years. However, with the projected revenue growth rates of 19.8% in fiscal year 2023 and 20.7% in fiscal year 2024, questions arise regarding whether Tesla will soon need to abandon its growth targets.
The good news is the decrease in lithium carbonate prices has been beneficial in sustaining Tesla's gross margin. This has allowed the company to reduce prices and stay competitive with Chinese rivals. However, any further deterioration in the gross margin outlook could have negative implications for Tesla's stock price.
Technically, the stock has been trending down since June 2022. $194 will be a crucial support for Tesla. We might see further downside if this level is broken.
TSLA
is set to report its financial results for the third quarter of fiscal year 2023. Analysts are anticipating a revenue growth rate of 6.3% year-over-year, which would be the lowest since the -4.9% year-over-year growth experienced in the second quarter of fiscal year 2020 during the pandemic. The earnings per share (EPS) is expected to be $0.53, reflecting a decline of 44% compared to the previous year. This decrease in EPS can be attributed to increased competition, particularly in terms of pricing. In recent developments, BYD has surpassed Tesla in terms of deliveries, thus becoming the largest battery electric vehicle (EV) manufacturer in the world. Furthermore, BYD is making progress in the higher-priced segment that Tesla has traditionally dominated.
Tesla had previously made a commitment to investors, promising 50% annualized growth for a period of 10 years. However, with the projected revenue growth rates of 19.8% in fiscal year 2023 and 20.7% in fiscal year 2024, questions arise regarding whether Tesla will soon need to abandon its growth targets.
The good news is the decrease in lithium carbonate prices has been beneficial in sustaining Tesla's gross margin. This has allowed the company to reduce prices and stay competitive with Chinese rivals. However, any further deterioration in the gross margin outlook could have negative implications for Tesla's stock price.
Technically, the stock has been trending down since June 2022. $194 will be a crucial support for Tesla. We might see further downside if this level is broken.