Tesla sees some lower estimates on Q3 deliveries and EPS

Analysts are adjusting their estimates on the number of Q3 deliveries Tesla (NASDAQ:TSLA) will disclose as the calendar gets closer to the reporting date of October 2.

Canaccord analyst cut their estimate to 469,200 vehicles from a prior estimate for 480,000 vehicles. Meanwhile, Guggenheim forecasts Q3 deliveries of 456,000 vehicles. The consensus estimate for Q3 deliveries is now 459,000 vehicles. For perspective, Tesla (TSLA) delivered 443,956 vehicles in Q2 and 435,059 vehicles in Q3 a year ago.

Some firms have also lowered their Q3 EPS estimates on Tesla (TSLA) to adjust for even more aggressive pricing in certain markets. In China, Tesla (TSLA) has seen sales momentum pick up, although the company has been subsidizing interest rates down to 0%. The consensus Q3 EPS estimate from analysts has been trimmed to $0.61. Notably, Tesla (TSLA) has missed EPS estimates in its last four quarters and five out of the last six quarters. In general, Tesla’s (TSLA) automotive gross margins have shown a general downward trend over the past 12 quarters due to factors such as increased competition in the electric vehicle market, price cuts implemented by Tesla (TSLA) to maintain demand, higher spending on AI projects and new technologies, and the overall economic conditions affecting the automotive industry and supply chain.

On Seeking Alpha, KM Capital recently issued a Strong Buy rating on Tesla (TSLA). “The Dojo supercomputer and enhanced full self-driving capabilities will unlock new revenue streams, reducing dependence on monetary cycles and opening the Robotaxi market,” wrote KM Capital.

Shares of Tesla (TSLA) dipped 0.34% in premarket trading on Friday to $229.81 vs. the 52-week range of $138.80 to $278.98. The EV stock trades above its 100-day and 200-day moving averages. Short interest on TSLA only stands at 2.6% of the total float.