Robust Delivery Count to Propel Tesla's (TSLA) Q3 Earnings

Tesla TSLA is set to release third-quarter 2021 results on Oct 20, after the closing bell. The electric vehicle (EV) manufacturer’s results will likely reflect the favorable impact of the rising Model 3/Y deliveries, which form a major chunk of the automaker’s overall deliveries.

(Also read: Why Tesla Looks Poised for a Solid Q3 Earnings Release)

Q2 Highlights

In the last reported quarter, Tesla posted earnings of $1.45 per share, topping the Zacks Consensus Estimate of 90 cents. Moreover, the metric compared favorably with the year-ago earnings of 44 cents a share. Total revenues came in at $11,958 million, surpassing the consensus mark of $11,389 million. The top line also witnessed year-over-year growth of 98.1%. The total automotive revenues surged 97% year over year to $10,206 million in the second quarter. Tesla had cash and cash equivalents of $16,229 million as of Jun 30, 2021 compared with $19,384 million on Dec 31, 2020. Net cash provided by operating activities amounted to $2,124 million in second-quarter 2021.

During the June-end quarter, Tesla reported production and delivery of 206,421 and 201,304 vehicles, respectively, reflecting a year-over-year jump of 151% and 121%. The company reported Model 3/Y production and deliveries of 204,081 and 199,409 vehicles, marking a year-over-year jump of 169% and 148%, respectively. Meanwhile, the production and delivery of Model S/X plummeted 63% and 82% on a year-over-year basis to 2,340 and 1,895 units, respectively.

Production & Deliveries in Q3

With the Model 3 sedan being its flagship vehicle, Tesla has established itself as a leader in the electric vehicle (EV) segment. The stellar performance and impressive design of its products are anticipated to have ramped up the sales volumes during the quarter under review. Being the first mass-market electric car in North America and Europe, Model 3 is one of the best-selling vehicles. The car’s market-leading safety, performance and impressive specs have made it a huge success. Also, the elevated production and deliveries of the Model Y vehicles are likely to have buoyed the automaker’s earnings during the quarter in discussion.

Tesla reported stellar third-quarter 2021 production and deliveries, courtesy the soaring popularity of green vehicles, rising preference for personal mobility, easier credit conditions, and a sustained economic recovery buoyed by the accelerated nation-wide vaccination drive.

The EV behemoth registered production and deliveries of 237,823 and 241,300 vehicles, respectively, in the September-end period, higher than the 145,036 units produced and 139,300 units delivered in the corresponding quarter of 2020. The delivery count marks a 19.9% and 73.2% jump on a sequential and yearly basis, respectively. The delivery count for the third-quarter also beat the Zacks Consensus Estimate of 230,550 units.

For the quarter in discussion, the Model 3/Y registered production of 228,882 vehicles, while 232,025 vehicles were delivered, highlighting a massive increase from the production of 128,044 units and delivery of 124,100 units of Model 3/Y during the year-ago quarter. The Model 3/Y production count is at par with the Zacks Consensus Estimate, while the delivery count topped the consensus metric of 219,169 units.

Overall Earnings & Revenue Projections for Q3

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $1.35, indicating an increase from the 76 cents posted in the prior-year quarter. The Zacks Consensus Estimate of $13.16 billion for sales calls for a 50.07% surge on a year-over-year basis.

Tesla — which shares space with auto biggies including General Motors GM , Ford F and Toyota TM — currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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