Tesla reports earnings on Wednesday, October 21, after market close and will host an investor call at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time / 9:30 p.m. UTC.
For a thorough breakdown of what to expect ahead of earnings, see the included video. Below, you can find estimates from Tesla Daily's Rob Maurer, as well the Wall Street consensus estimates.
Maurer is forecasting total revenue of $8.45B and GAAP earnings per share of $0.29, up 34% and 81% to last year, respectively. Other areas of focus are likely to include Tesla's automative gross margin (excluding credits) and the impact of stock-based compensation.
Automotive gross margin excluding credits took a hit in Tesla's second quarter as Tesla was impacted by coronavirus-related production shutdowns in the US and China, falling to 18.7% from 20.0% in Q1. With all-time highs in production and deliveries in Q3, the quarterly results will give investors better visibility into Tesla's current margin profile.
As for stock-based compensation, Elon Musk's compensation plan is likely to have a significant impact on the quarter as Tesla may deem additional plan milestones as likely to be achieved. Stock-based compensation reduces GAAP net income and earnings per share to account for the dilution of additional stock being created, but it is not a cash cost to the company. For Q3, investors should expect a larger difference between GAAP earnings and non-GAAP earnings, which excludes stock-based compensation.
For more on Tesla's earnings, be sure to follow Tesla Daily on The Street.
Disclosure: Rob Maurer is long TSLA stock and derivatives.