FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
FxPro information and reviews
FxPro
90%

Quarterly Earnings Reports: Tesla


25 October 2021

As we reach deeper into earnings season companies compete with each other for investments and look to increase the demand of their stocks as well as prices. Tesla has been one of the most recent Quarterly Earnings Reports which was released before market open on Thursday. The price movement has been in a strong upward trend since the 18th August 2021, traders now are questioning whether the stock is overpriced, so let’s dive in deeper.

Prior to the Quarterly Earnings Reports

At the end of September, Tesla had sold 56,000 cars in the Chinese market, which is 27% higher than in August and is the company’s highest result since the opening of its Gigafactory in Shanghai in 2019. The figure also significantly exceeded the overall 20% decline in the market. As a result of this, the stock managed to narrowly escape the strain on prices within the US equities market.

Since the beginning of the summer months, there has been a decline in sales of electric cars in China against the backdrop of the energy crisis and the scarcity of semiconductors. September sales in the local market bolstered record shipments of Tesla in the third quarter with an increase of 73.2% to 241.3K units. At the same time, the company acknowledged difficulties with the supply chain and logistics in quarter 3, a similar trend is expected in quarter 4.

Tesla’s Reported Earnings

Assets are priced on supply and demand, as a result of this the Earnings Per Share figure is one of the most observed ratios released by the company. This is partially due to the fact it takes into account the supply element, the number of available shares within the market, and the demand which is strongly influenced by company profits. Earnings per Share is simple to understand, it is the company’s earnings divided by outstanding shares.

Below we can see the previous 12 month’s EPS (Earnings per Share) for Tesla

We can see from the above the company has quadrupled the EPS figure in this quarter compared to the first quarter of the year. In addition, the growth in profits the company has beat its estimated EPS which was originally priced in the market. The increase is not only related to the company’s revenue but also to the number of common stocks. The company revenue is $13.76 Billion, higher than the originally predicted $13.63Billion.

Tesla’s Non-Automobile related Projects and Market Conditions

Many traders and individuals instantly think of Tesla as a car manufacturer similar to Ford and Mercedes. However, Tesla is not only mitigating its risk across more industries but also managing to profit from it. Tesla has generated $806 million income from its energy-based projects, which combines solar and energy storage products, and $894 million in services and other revenue. This includes vehicle maintenance and repairs and auto insurance. For its energy and storage side of the business, costs of revenue rose to the highest number in the last five quarters to $803 million during the third quarter.

When looking at the general stock market conditions we can see the price movement is currently bullish and depending on the index we can see full price corrections for any losses made during September of this year. The Nasdaq has increased by 6.60% over the past 17 days while the SNP500 has increased by 5.87%.

The price movement of the stock is without a doubt seeing strong bullish movement to date and has managed to outperform most stocks available on the market. However, even while trading a stock with strong bullish movement and strong potential through the eyes of traders, it is vital to take into consideration risk management and pre-plan in case of any unwanted movement. This should be kept in mind during the decision-making process. We invite you to watch our webinar highlight shedding further light on Quarterly Earnings Reports and their importance.

#source

Share:


Related

Trading the SPDR S&P 500 ETF Trust
Trading the SPDR S&P 500 ETF Trust

The Standard & Poor’s (S&P) 500 Index measures the market capitalisation of the top 500 US largest corporations. Many traders and investors use the S&P 500 Index as a benchmark...

23 Sep 2022

Gold pauses as traders await Fed decision
Gold pauses as traders await Fed decision

The anticlimactic performance of gold continues as the prospect of aggressive rate hikes by central banks around the world amid heightened inflationary pressures...

21 Sep 2022

Developing a forex trading plan: All you need to know
Developing a forex trading plan: All you need to know

All forex traders have different backgrounds, market views, risk appetite, thought processes and expectations. Therefore, traders should not just blindly follow what other traders do...

20 Sep 2022

NordFX: Forex and Cryptocurrencies Forecast for September 19-23, 2022
NordFX: Forex and Cryptocurrencies Forecast for September 19-23, 2022

The World Bank said last week that risks of a recession in 2023 are growing amid simultaneous tightening of monetary policy by the world's leading Central banks and the energy crisis in Europe...

19 Sep 2022

Gold gains traction on the back of weaker dollar
Gold gains traction on the back of weaker dollar

The precious’ recent rally from its near year-to-date lows could be attributed to the broader dollar weakness observed in the past week, even though it remains elevated near its 20-year highs...

14 Sep 2022

NordFX: Forex and Cryptocurrencies Forecast for September 12 - 16, 2022
NordFX: Forex and Cryptocurrencies Forecast for September 12 - 16, 2022

The past week was marked by two significant events. First, the EUR/USD pair updated its 20-year low on Tuesday, September 06 once again, falling to 0.9863...

12 Sep 2022


Editors' Picks

HFM information and reviews
HFM
89%
IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.