Tesla (TSLA) reports fourth-quarter earnings late Wednesday, as the U.S.-based electric-vehicle maker prepares to open new factories in Texas and Germany. Tesla stock fell early Tuesday.
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“In the backdrop of a white knuckle Fed tightening and valuation-scrutinized market, Tesla’s stock has been under considerable pressure along with the rest of the growth space over the last month,” said Wedbush analyst Daniel Ives in a note to clients Monday.
Tesla has already reported blockbuster Q4 deliveries of 308,600 vehicles, bringing its 2021 total to a record-breaking 936,172. Tesla’s fourth-quarter deliveries included 296,850 Model 3 and Y vehicles, and 11,750 Model S and X models.
The results impressed Wall Street, as Tesla appeared to manage semiconductor shortages and supply-chain issues more effectively then some rival automakers.
For now, Tesla has the enviable problem of demand outstripping supply, analysts say. Production launches in Austin, Texas, and Berlin are “key to alleviating these issues,” Ives said.
Berlin, Austin Factories
The German factory will eventually produce the bulk of Tesla’s vehicles destined for European customers, starting with the Model Y crossover SUV.
Tesla recently got the OK to produce the first 2,000 units at its Berlin factory, while it awaits a final permit for the plant.
Meanwhile, it appears Model Y deliveries from Texas could begin by the end of the first quarter, according to industry website Electrek, citing unnamed sources. The start of Model Y production at Tesla’s Austin factory is also key because of its use of a new structural battery pack and 4680 battery cells.
Those batteries are critical to begin production of the much-delayed Cybertruck. The timeline now is for production to start by the end of the year and ramp up in 2023.
That’s well behind EV startup Rivian‘s (RIVN) late-2021 launch of its all-electric pickup, the R1-T, and later than the scheduled arrival of electric trucks from General Motors (GM) and Ford (F).
Ford’s F-150 Lightning is expected this spring. The first GM electric Silverado, aimed at a limited number of fleet operators, is expected to hit the road in Q2 2023. A consumer version will be available in the fall of 2023.
Tesla’s production ramp-up at both the Berlin and Austin plants will likely be slow at first. But Ives believes the Berlin plant will “alleviate the bottlenecks of production for Tesla globally.” He adds that Tesla will have by the end of 2022 the overall capacity for “about 2 million units annually from roughly 1 million today.”
Tesla Earnings
Estimates: FactSet analysts say Tesla EPS should nearly triple to $2.26 in Q4 vs. a year ago. Sales are seen jumping 58% to $16.993 billion.
Results: Check back Wednesday after the market close.
Tesla Stock
Shares fell 0.7% to 923.70 stock market today. TSLA stock gapped down to as low as 851.47 intraday Monday, extending a sharp sell-off from above 1,200 on Jan. 4. But it slashed losses to 1.5%, at 930. The stock…
Read More: Tesla Stock Falls Ahead Of Earnings, Amid Market Rout