Lookahead: Demand questions will take centre stage at Tesla’s quarter report
Demand issues are expected to take centre stage as Tesla unveils its third quarter report later tonight.
Analysts have become increasingly sceptical about the electric vehicle (EV) giant’s ability to weather the storm of soaring inflation rates, sky-high energy bills and demand weaning in China.
In a trading update published earlier this month, Tesla reported that it had manufactured 22,000 more cars than it sold.
This might be a sign that higher costs of living are discouraging consumers from buying expensive models such as Tesla.
“A top concern right now is demand in China as wait times seem to be shrinking,” analysts at RBC Capital Markets told Reuters.
“Question is if this is a blip or signs of a bigger change among consumers.”
According to Fiona Cincotta, senior financial market analyst at City Index, the results “will likely show” profitability slowing down year-on-year as a result of the global economic downturns and continued supply chain issues.
“Forecasts are for earnings per share of $1.01 on revenue of $22 billion, up 59 per cent year-on-year,” she added.