Will Tesla’s 1Q17 Earnings Justify Stellar Year-to-Date Gains?


Nov. 20 2020, Updated 3:19 p.m. ET

Tesla’s 1Q17 earnings

Tesla (TSLA), the American electric carmaker, is set to release its 1Q17 earnings on May 3, 2017. The company’s stock has yielded impressive returns of about 45.1% on a YTD (year-to-date) basis. Tesla’s strong 1Q17 deliveries and high expectations could be the primary reason for its outstanding performance on Wall Street.

Before we find out what analysts are expecting from the company’s 1Q17 earnings event, let’s review Tesla’s performance on Wall Street in 2017 so far.

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Tesla’s stock outperforms

The broader market (SPY) ended the first quarter on a positive note with about 5.5% gains, unlike mainstream US automakers. The stocks of the two largest US automakers, General Motors (GM) and Ford (F), largely traded on a mixed note in 1Q17. During the quarter, GM rose 1.5%, while Ford fell 4.0%.

In contrast, Tesla’s stock outperformed the broader market in 1Q and delivered 30.2% returns. In the first week of April, Tesla reported a solid YoY (year-over-year) increase in its 1Q vehicle deliveries and production rate. These higher production and delivery figures could be the primary reason for the stock’s rally in April.

In January 2017, Tesla got clearance from NHTSA (National Highway Traffic Safety Administration) in an investigation involving Tesla’s autopilot system. The report didn’t find any evidence that Tesla’s autopilot system was involved in reported road accidents. The report was a big relief for the company, which could be the primary reason for the recent optimism in its stock.

Harley-Davidson (HOG), the US heavyweight motorcycle pioneer, reported dismal 1Q earnings results on April 18. Read Harley-Davidson’s 1Q17 Results: Tough Times Ahead? to learn more.

Series overview

In this series, we’ll explore what analysts estimate for Tesla in 1Q17 and beyond. These estimates will include expectations from the company’s revenues and margins. We’ll also take a look at analyst recommendations for Tesla’s stock, its valuation multiples, and some key technical price levels later in this series.

Let’s begin by looking at analyst expectations for Tesla’s 1Q17 earnings.


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