Tesla (NASDAQ:TSLA) is scheduled to release its Q3 2023 results on October 18. The consensus estimate predicts earnings of 73 cents per share and revenues of $24.38 billion, with earnings estimates down 5 cents over the past week, indicating a 30.5% YoY decrease, while revenue estimates suggest a 13.6% YoY increase.
Despite record deliveries and revenues in the previous quarter, Tesla’s Q3 deliveries declined sequentially after reporting record deliveries in the first two quarters of 2023. The company delivered 435,059 vehicles in Q3, marking a 6.6% sequential drop from the previous quarter. Production volumes also declined due to planned factory shutdowns for upgrades.
Additionally, price reductions on inventory vehicles and existing models in Q3 are expected to impact gross margins, with a projected 26.4% decline in gross profit from the automotive segment. Operating margin is also likely to decrease by 170 basis points sequentially due to ongoing investments in capacity expansion.
On the positive side, Tesla is experiencing increased revenues from its energy generation and storage segment, driven by the success of Megapack and Powerwall products. Production is being scaled up at a dedicated Megapack factory to meet growing demand, contributing positively to upcoming results.
The estimate for the Services/Other unit is $2.35 billion, indicating a 43% YoY and 9% QoQ growth, while revenues from the Energy Generation/Storage segment are expected to be $1.57 billion, suggesting 40.6% YoY and 4% QoQ growth.
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Author Stephanie Bédard-Châteauneuf 
