Tesla’s Earnings Report: 3 Elements to Watch
The unbelievable momentum behind Tesla (NASDAQ:TSLA) stock slowed in October, giving the electric-car manufacturer losses that amounted to 10 percent of the overall price by November 1. However, some analysts are considering that dip an opportunity to buy. Before the Tesla earnings report for the third quarter arrives Tuesday, there are three factors for investors to watch.
1. Will EPS break $0.11?
As recently as September, a consensus of analysts saw Tesla’s earnings-per-share coming in at $0.09 for the third quarter. That estimate now stands at an $0.11, adding a bit of pressure for Tesla to meet its still-reasonable goals. Tesla has beaten the estimate in two of the past four quarters, which makes a case for the conservative approach working. However, anything below $0.11 would be a considerable disappointment.
2. Can a short rush hit Tesla before Tuesday?
With Tesla stock trading about 100 times its anticipated 2014 earnings, it’s clear the price is fueled by great expectations. Investor confidence has hit unprecedented highs this year, causing even Tesla CEO Elon Musk to admit the stock was overvalued a bit. One analyst told CNN Money such candor was rare for a chief executive and an indicator investors ought to consider carefully.