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Tesla Q1 2022 earnings call: What analysts are expecting

Credit: Dirty Tesla

Tesla (NASDAQ:TSLA) will be holding its first-quarter earnings call after markets close today, April 20, 2022. The Tesla Q1 2022 earnings call will begin at 4:30 p.m. CT / 5:30 p.m. PT. 

Considering that Tesla reported impressive numbers for its first-quarter vehicle deliveries and production, Wall Street has some notable expectations for the EV maker. Tesla reported that it produced 305,407 and delivered 310,048 vehicles in the first quarter. Analysts were expecting the company to deliver 311,000 cars during the quarter. 

For the company to beat the Street’s expectations, Tesla would have to report earnings per share of $2.27, which implies over 143% year-over-year growth. Analysts also expect Tesla to post revenue of $17.8 billion, which would correspond to year-over-year growth of 71%. 

While reasonable, Wall Street’s expectations may be quite difficult to beat, especially since Giga Shanghai, which produces about half of the company’s vehicles, was hit by China’s Covid lockdowns in the latter half of March. The facility’s vehicle production line was even shut down for several days in March after areas of Shanghai were closed down as part of an effort to control the virus. 

Analysts estimate that Giga Shanghai produces about 2,100 cars per day, so the three-week shutdown experienced by the plant is expected to have cost the company about 40,000 vehicles. Despite this, however, Wall Street’s consensus still expects Tesla to deliver 340,000 electric cars in the second quarter. 

Tesla’s current state has encouraged the analysts at Piper Sandler to reduce their price target on the electric vehicle maker to $1,250 from $1,350. Barclays analyst Brian Johnson, a Tesla bear, maintained his pessimistic stance on the company with a price target of $325 per share. Johnson added that Musk’s Twitter acquisition attempt was a “smokescreen” to shield Tesla from a possible weak Q2 guidance. 

Wells Fargo analyst Colin Langan, on the other hand, has adopted a different view than Johnson. Langan noted that a successful acquisition of Twitter by Musk might actually adversely affect Tesla stock since the CEO might need to sell TSLA shares to cover his offer for the social media company. 

Dan Ives of Wedbush Securities focused on the potential of Gigafactory Texas, which recently started vehicle production and deliveries. Ives noted that many on Wall Street are underestimating the effects of Giga Texas. The analyst also noted that together with Giga Berlin, the new Austin electric vehicle plant could help push the company to reach an output of 2 million vehicles per year. 

Disclaimer: I am long TSLA.

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Tesla Q1 2022 earnings call: What analysts are expecting
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