Tesla earnings will be reported after the close. The expecations (and prior period numbers for comparison) shows:
- Q2 Revenues $24.5 billion estimate, which would be a slight increase from Q1 and a substantial 45% increase year over year.
- Tesla's adjusted EPS are estimated to be $0.82 for the second quarter.
- Tesla's adjusted net income is anticipated to be $2.89 billion, slightly less than the $2.9 billion from Q1 but nearly $300 million more than the same period last year.
- In Q1 2023, Tesla reported revenues of $23.33 billion and a net income of $2.51 billion.
- In Q2 2022, the company posted $16.93 billion in revenue and a net income of $2.27 billion.
Earlier this month, Tesla reported global production of 479,700 units and deliveries of 466,140 units, both figures setting new company records. These numbers easily topped Wall Street consensus estimates of 448,599 units and the prior quarter’s total of 422,875.Investors are keen to learn how Tesla's price cuts have impacted margins.
There is also anticipation for updates on the
- Cybertruck (the first came off the assembly line this week),
- Production of the 4680 battery cells, the
- Development of a humanoid robot ("Tesla Bot" or "Optimus"), and
- A new factory in Mexico.
Furthermore, investors seek progress reports on autonomous or robotaxi-ready vehicles.
Looking at the daily chart of Tesla below, its share price is currently trading down -$0.70 or -0.24% at $292.64. The high price today reached $299.29. That took the price above the 61.8% retracement of the move down from the all-time high reached in November 2021 at $295.05.
On the top side, the next target area comes between $311.01 and $318.50 (see red numbered circles on the chart below). A move above that area would open the door for further upside momentum. On the downside, the 50% midpoint of the same range since the November 2021 high, comes in at $258.15. Move below would increase the bearish momentum.
For Netflix, its earnings report is expected to reflect the impacts of its recently launched initiatives including the crackdown on password sharing and the introduction of a cheaper, ad-supported tier.
- EPS estimate $2.86 per share
- Revenue of $8.30 billion for the quarter.
The introduction of Netflix's new sharing policy, which started in May, has likely influenced the growth of its subscriber base.
- Analysts from Wells Fargo see Q2 net additions at 2.1 million.
- Netflix's cheaper, ad-supported tier, introduced in response to a subscriber loss in 2022, has been adopted by 25% of new customers in areas where it is available, and it had 5 million active users, as per the company's announcement in May.
- Netflix confirmed the removal of its “basic” ad-free plan, making the standard plan with ads its cheapest option at $6.99 a month.
Despite ongoing strikes by Hollywood writers and actors, Netflix is expected to manage better than other media companies due to its wide variety of content, particularly from international sources.
Netflix shares are currently trading up $5.40 or 1.14% at $480.20. For the year the price is up 62.95% in 2022, the price fell -73.90%. The current price is trading between a gap created from a sharp decline after earnings released on January 20, 2022. That Comes between $457.13 and $506.93. The earnings today could take the price above or back below those levels.
Looking at the daily chart of Tesla, its share price is currently trading down $0.70 or -0.24% at $292.64. The high price today reached $299.29. That took the price above the 61.8% retracement of the move down from the all-time high reached in November 2021 at $295.05. On the top side, the next target area comes between $311.01 and $318.50 (see red numbered circles on the chart below) a move of that area would open the door for further upside momentum. On the downside, the 50% midpoint of the same 2021 all-time high comes in at $258.15.
