On Wednesday 11 February Tesla is due to update the markets with its fourth-quarter figures. The company’s adjusted earnings per share are called at $0.32, considerably higher than last quarter’s $0.02, and sales are also expected to increase from $932.348 million up to $1.23 billion. The third quarter saw the company make a loss of $70.981 million, but the fourth quarter is predicted to see the company turn a profit of $30.436 million.
Institutions still remain broadly positive of the company, with 13 rating it a buy, seven a hold and two as sells. A demonstration of how optimistic institutional analysts are, regarding the company’s ability to turn a corner, is in the average 12-month price expectation of $277.59. This is some 35% above its current price of $205.
It is not all plain sailing for the electric automobile manufacturer, as it was only in November that it was forced to reduce its target for production down from 35,000 to 33,000. This figure is still an improvement from the previous year of over 45%. One of the issues that Tesla has suffered from is the overenthusiasm of investors factoring in public perception changing car sales long before they happen.
The company’s CEO, Elon Musk, continues to hold out for the completion of its Gigafactory to manufacture batteries – but this $5 billion project is just like the company, where expectation is commonly higher than the result.
The shares, in the last couple of weeks, have halted the recent slide from over $280 just before the November manufacturing announcement. It will take a solid set of expectation-meeting/beating figures to convince investors of a complete turnaround.