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Tesla is scheduled to report 2Q results on Wednesday, July 19th. Wells Fargo anticipates that the automaker will report an EPS of $0.75, which is slightly below the consensus estimate of $0.79. Their analysis suggests that the average selling prices (ASPs) for Tesla vehicles will decrease to $46K, compared to $47K in Q1. This decline can be attributed to price reductions and a less favorable mix of vehicle trims in Q2. Furthermore, Wells Fargo predicts a quarter-on-quarter decrease of approximately 4.5% for the prices of Models Y and 3, which indicates a total decline of around 13% overall.
Analysts at the firm wrote in a note, “The stock has run up 68% in the last two months (vs S&P 9%) likely driven by stronger-than-expected Q2 deliveries, the various deals to share its charging network with competitors, reports Model 2 is launching by end of next year, and Model 3 SR qualifying for full EV tax credit.”
Wells Fargo cut their 2023 EPS estimates for the company from $3.40 to $3.25, 2024 estimates from $3.75 to $3.60, and 2025 from $3.85 to $3.75 to reflect Q2 price cuts. They raised 2026 estimates from $3.75 to $4.30 on Model 2 ramp and charging growth.
Shares of TSLA are up 1.92% in premarket trading on Monday.
