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Tesla (TSLA) Q4 Full Year 2020 Earnings: What to expect

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Tesla (NASDAQ:TSLA) ended the past year on a high note, with the electric car maker announcing that it had hit its ambitious, self-imposed target of producing and delivering half a million cars within 2020. With these results in mind, as well as the momentum of TSLA stock that it built up over the past quarters, expectations are high that Tesla’s numbers will be impressive this Q4 FY 2020 as well. 

Analysts are expecting a notable rise in TSLA’s adjusted earnings per share on strong revenue growth compared to the year-ago quarter. Here’s a quick list of what the EV community may expect from Tesla’s Q4 FY 2020 earnings call. 

Revenue

Following a record quarter, analysts are expecting Tesla to maintain its profitability this Q4 2020. Wall Street’s current consensus for Tesla’s Q4 2020 revenue stands at $10.473 billion, while Estimize, a crowdsourced platform that aggregates estimates from analysts, executives, fund managers, and academics, expects Tesla to post revenue of $10.657 billion. 

Earnings Per Share

With its momentum over the past quarters, Tesla is expected to post an earnings per share of $1.04, as per Wall Street consensus. Estimize, on the other hand, lists its Q4 2020 prediction for Tesla’s EPS at a more optimistic $1.08 per share. 

Tesla Model S and Model X refresh

Apart from its financials, Tesla is expected to reveal some details on the company’s flagship vehicles, whose production was suspended late last month. Amidst rumors of an impending “refresh” for the Model S and Model X, as well as sightings of apparent test mules of the updated flagship sedan around the Fremont factory, there seems to be a pretty fair chance that Tesla would discuss its plans for the two vehicles in the Q4 FY 2020 earnings call. 

4680 Battery Cell Production Update

Tesla’s Battery Day event announced the company’s custom-designed 4680 cells, and since then, the electric car maker has gone on a hiring spree for its battery team, both in the United States and in foreign countries. With Gigafactory Berlin poised to start Model Y production later this year, and with the apparent rollout of the Model S and Model X “refresh” in the Fremont factory, Tesla and its executives may share some of its plans for the rollout of its new battery in the upcoming call, including the 4680 cells currently being produced at the Roadrunner site in the Kato Rd. facility. 

Full Self-Driving Rollout

Tesla’s FSD beta has been rolled out to a selected group of testers over the past months, and based on videos of the system shared online, it appears that improvements are coming fast. With Tesla’s FSD beta now handling inner-city streets more accurately, and with the system now accomplishing whole drives from city to city without human intervention, Tesla may be planning on rolling out FSD’s more advanced features to more consumers soon. Potential details for such a program, together with updates such as a subscription-based payment model, may also be discussed. 

Tesla is expected to hold its Q4 and Full Year 2020 earnings call after markets close on Wednesday, January 27, 2021. 

Disclaimer: I am long TSLA.

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Tesla (TSLA) Q4 Full Year 2020 Earnings: What to expect
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