Investor's Corner
Tesla’s Q4 and Full Year 2018 financial report and earnings call: What to expect
Tesla (NASDAQ:TSLA) is set to release its Q4 and Full Year 2018 financial results after markets close tomorrow, January 30. Following the release of its fourth-quarter and full-year financial results, the electric car maker is scheduled to hold its earnings call, which will begin at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time).
A lot is riding on Tesla’s results for the fourth quarter of 2018. To say that the past year has been challenging for the company is an understatement, with CEO Elon Musk describing the Model 3 ramp as one of the most difficult periods of his career. That said, despite a short-lived attempt at privatization, run-ins with the SEC, and clashes with mainstream media, Tesla surprised Wall Street on the third quarter when it posted a GAAP profit of $312 million. Since then, the company’s critics have been forced to change their narrative from “Tesla will never turn a profit” to “Tesla’s Q3 2018 results are as good as it ever will get.”
Elon Musk has proven to be quite conservative about Tesla’s fourth quarter results. In an email to employees earlier this month, Musk explained that Tesla’s third-quarter earnings were notably driven by a push to sell higher-priced variants of the Model 3 to North American customers. Musk noted that unaudited estimates point to Q4 2018 making a GAAP profit, though not as much as the third quarter.
With this in mind, here are a number of things to expect from tomorrow’s Q4 fourth-quarter and full-year 2018 financial results and earnings call.
Earnings
Analysts polled by FactSet have noted that they expect Tesla to report adjusted Q4 2018 earnings of $2.20 a share. This is a notable improvement over the fourth quarter of 2017, with its loss of $3.04 per share. GAAP earnings are expected to hit $1.23 a share, another notable turnaround from Q4 2017’s loss of $4.01. Estimize, a crowdsourced platform that aggregates estimates from analysts and other financial executives, notes that it expects Tesla to report an adjusted profit of $2.02 per share.
Revenue
FactSet surveys among analysts state that Tesla is expected to report revenue of $7.12 billion for Q4 2018, a notable improvement over the $3.29 billion from 2017’s fourth quarter. Estimize’s results are a bit more conservative at $7.03 billion.
Sustainability
If there is one thing that investors would be looking for in Tesla’s upcoming fourth-quarter and full-year 2018 financial report and earnings call, it would be the company’s capability to sustain its profitability. Tesla, for its part, has seemingly adopted contingencies to ensure this, from trimming its workforce by 7% to retiring the 75 kWh battery pack options for the Model S and X and concluding its long-running customer referral program.
Ultimately, if Tesla could successfully prove that its feat in the third quarter is sustainable, the company could definitively prove to investors that it would be profitable moving forward.
Product Roadmap
Tesla has a lot on its plate this 2019. The highly-anticipated Model Y SUV is expected to be unveiled sometime this year, and Elon Musk has teased that the Tesla pickup truck might be revealed as well. Apart from this, the company is aggressively ramping Solar Roof tiles production in Gigafactory 2. Lastly, Tesla is also expected to initiate the start of the Semi’s production, as announced during the vehicle’s unveiling.
Considering Tesla’s busy year, there is a good chance that Elon Musk and the company’s other executives would provide some updates on upcoming projects, such as the release of Hardware 3 and upcoming Autopilot features. Other pertinent updates for the company’s existing product lineup, such as a possible 2170 battery cell upgrade for the Model S and X, as well as the production of the $35,000 Model 3, might also be discussed.
As of writing, Tesla shares are trading at -0.82% at $293.95 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
SpaceX (NASDAQ: SPCX) will report its first public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.
Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:
- Space: $1.41 billion
- Connectivity: $4.84 billion
- AI/SI: $6.47 billion
Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.
Here are the three things to watch for on the call:
AI Revenue Ramp and the $100B+ ARR target
AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.
Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.
Starlink/Connectivity Metrics and Mobile Expansion
Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.
Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates
Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.
Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.
SpaceX will report earnings after market close today and will stream the call on X.
Watch live as SpaceX discusses our Q3 2026 earnings at 3:30pm CT today → https://t.co/Qrb0qeVG15
— SpaceX (@SpaceX) October 20, 2026
Elon Musk said he is planning to give “every one of his SpaceX shares to every kid in America” in 2027, stating that “this will be the first of many.”
SpaceX went public earlier this year, and its stock price has been relatively stable since leveling off shortly after its IPO. Based on its current price, it’s a gift of just over $10 billion to children across the United States.
It appears to be closely related to President Donald Trump’s bank accounts for children, which were set up earlier this year as Trump Accounts.
Just hours earlier, Anthropic had announced the establishment of its Anthropic Public Benefit Fund, “a new wholly-owned entity dedicated entirely to public benefit.” Musk responded by stating he recommended “giving the shares directly to the public,” and that he would be doing it that way.
Just a little bit later, Musk said children across the U.S. would be getting a share from him:
Next year, I will give one of my SpaceX shares to every kid in America.
This will be the first of many.
— Elon Musk (@elonmusk) October 19, 2026
There are roughly 70 million children, meaning someone under the age of 18, in the United States, according to the Federal Interagency Forum on Child and Family Statistics. Musk’s ownership of SpaceX stock shows he has around 849 million Class A shares of SpaceX stock, according to filings with the SEC.
Investor's Corner
SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching
SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger
SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.
The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures
All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.
If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.
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