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Tesla Q3 Earnings Announcement

22-10-24

 

Tesla will announce its third quarter earnings this Wednesday after market close following the lacklustre robo-taxi event which failed to woo investors on 10th October.

After reporting third quarter deliveries of 462,890 units above the 462,000 expected by analysts, the focus during the upcoming earnings call will be on the businesses profit margins.

In its Q2 2024 earnings report, Tesla delivered revenue of $25.5 billion, surpassing market expectations of $24.73 billion by 3.11%.

Despite the revenue beat, Tesla’s Earnings Per Share (EPS) fell short, coming in at $0.52 against the projected $0.62, marking a significant miss of 16.13%.

The Q2 EPS shortfall highlighted the company’s struggle to maintain profitability as it remains in a ruthless price-cutting contest with Chinese rival BYD.

Musk’s plan to produce a “fully autonomous unsupervised” cybercab for delivery before 2027 was met with amusement by investors that have grown weary of his ambitious capital-intensive ideas which lay blind to regulatory scrutiny.

Previous earnings calls have marked periods of significant volatility, Tesla’s share price has moved by a minimum of 12% intra-day following each quarterly update so far this year.

 

Chart shows previous Tesla earnings dates

 

If you believe a rebound is in-store for the famously unpredictable tech stock this coming Thursday, you may consider purchasing a call option.

Call Option

buy 1 TSLA Weekly 08-Nov-2024 217.5 Call @ $11.30 = $1130 debit 

Trade Idea

Call Option

TSLA Cash price = $216.50 (as of  22/10/2024 ) 

Buy: 1 (contract) x $11.30 (contract price) x 100 (contract size) = $1130 debit 

Total consideration of $1,130 (excl. fees + commissions) 

Defined risk profile – maximum loss is equal to the net option premium paid (+ fees and commissions) 

A 10% increase to $239.25 by 08-Nov-2024 expiry would yield a 92% return on your investment. 

This strategy will break even if TSLA = 228.80 at expiry on  08-Nov-2024 

Maximum loss $1,130 (excl. fees + commissions) 

The contents of this article are for general information purposes only. Nothing in this article constitutes advice to any person and any investments and/or investment services referred to therein may not be suitable for all investors. If you’re unsure whether any investment is right for you, you should contact an independent financial adviser. For more information, please see IMPORTANT DERIVATIVE PRODUCT TRADING NOTES.

Written By

Sebastian Blanco

Desk Broker

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Important information: Derivative products are considerably higher risk and more complex than more conventional investments, come with a high risk of losing money rapidly due to leverage and are not, therefore, suitable for everyone. Our website offers information about trading in derivative products, but not personal advice. If you’re not sure whether trading in derivative products is right for you, you should contact an independent financial adviser. For more information, please read our Important Derivative Product Trading Notes.

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