Tesla has recently sparked anticipation with its upcoming ‘We, Robot’ event, where it promises insights into its robotaxi vision and potential revelations about its humanoid robot venture.
For Tesla, this event marks a pivotal moment, a climax after relentless efforts in its FSD program and amidst the uproar in the artificial intelligence realm.
Amidst the buzz, the pressing query remains – Should investors consider delving into Tesla shares prior to the event? Let’s dissect how the company stands at present.
Tesla’s Recent Market Performance
As always, the focal point for assessing Tesla’s performance remains its Electric Vehicle (EV) production and delivery figures, closely followed by its margins. In the latest reveal to investors, Tesla declared its Q3 production and delivery stats, reporting almost 463,000 EV deliveries and close to 470,000 units produced during the period.
Contrary to expectations, Tesla’s recent EV delivery numbers have consistently fallen below anticipated figures, trailing expectations over four consecutive phases.
Image Source: Zacks Investment Research
The real blow to Tesla’s market sentiment, however, has been the notable decline in margins over recent quarters. A visual representation of the company’s gross margins over the trailing twelve months is presented below.
Image Source: Zacks Investment Research
In 2024, Tesla shares have predominantly underperformed, experiencing a 1.7% downturn, notably lagging behind the S&P 500 and other industry peers. Projections for the company’s earnings have been revised downward across the board in recent months, indicating a gloomy forecast for near-term share performance.
Image Source: Zacks Investment Research
Despite the looming event and its potential surprises, the impact may be less significant than anticipated. It’s evident that Tesla has been devoted to advancing its autonomous driving technology, with shares already surging by 10% in the month leading up to the event, possibly suggestive of inherent expectations being already factored in.
Examining the Investment Landscape
For investors eyeing immediate returns with a short-term perspective, Tesla’s current earnings outlook does not paint a promising picture for immediate share performance. While a groundbreaking revelation could occur during the event, the 10% surge in shares in the month before the event hints at possible anticipation already priced in.
Conversely, for investors with a long-term horizon, Tesla remains the premier choice in the EV sphere, offering a rosy outlook for sustained growth. In its latest earnings disclosure, Tesla affirmed, ‘Though timing of Robotaxi deployment depends on technological advancement and regulatory approval, we are working vigorously on this opportunity given the outsized potential value.’