# Tesla investors to focus on demand issues in earnings report Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-19 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Is Tesla Facing Weak Demand Amid Stiff Competition? Meta Description: Find out if Tesla Inc is experiencing weakness in demand amid tough competition and economic challenges in its upcoming quarterly report on Oct. 19. URL: https://financedigest.com/tesla-investors-to-focus-on-demand-issues-in-earnings-reporthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-18t174645z2lynxmpei9h0s5rtroptp4tesla-jobs-1736814995370-compressed.jpg) (Reuters) -Tesla Inc’s quarterly report on Wednesday will likely show whether the Elon Musk-led electric-vehicle maker is facing any weakness in demand that is starting to weigh on the wider auto industry. Decades-high inflation, rising energy bills in Europe and signs of a weakening China market have raised doubts among some analysts about whether Tesla can buck an economic slowdown and continue to raise prices without hurting its sales. Although Musk has said Tesla “does not have a demand problem”, the company’s latest report on deliveries showed that it made 22,000 more EVs than it delivered to customers in the third quarter. It blamed the rise in inventory on transportation-related problems. CONTEXT Demand for [Tesla vehicles in China](https://www.financedigest.com/us-house-committee-chair-concerned-by-tesla-deals-in-china.html "US House committee chair ‘concerned’ by Tesla deals in China"), the world’s biggest market for autos, is emerging as a major worry among Wall Street analysts, given that the EV maker faces tough competition from domestic rivals BYD, Nio Inc and XPeng Inc. A top concern right now is demand in China as [wait times seem to be shrinking,” RBC Capital Markets](https://www.financedigest.com/jittery-markets-attempt-risk-on-rally-while-waiting-for-powell.html "Jittery markets attempt risk-on rally while waiting for Powell") said. Question is if this is a blip or signs of a bigger change [among consumers.”](https://www.financedigest.com/research-reveals-upsurge-of-interest-among-consumers-online-for-alternative-banking-providers.html "Research Reveals Upsurge Of Interest Among Consumers Online For Alternative Banking Providers") Globally, there are fears that auto [sales may lose steam in the coming quarters as rising](https://www.financedigest.com/stocks-rise-after-bank-sale-fuels-investor-risk-appetite.html "Stocks rise after bank sale fuels investor risk appetite") interest rates and a weaker economic backdrop discourage consumers from making big-ticket purchases. Analysts say [pricing is a key factor that could help Tesla](https://www.financedigest.com/tesla-expands-discounts-with-price-cuts-in-europe-singapore-israel.html "Tesla expands discounts with price cuts in Europe, Singapore, Israel") make up for a possible demand drop and boost revenue. The average U.S. [selling price of Tesla’s Model](https://www.financedigest.com/this-is-the-best-week-for-cash-savvy-iphone-fans-to-sell-their-6s-models.html "This is the best week for cash-savvy iPhone fans to sell their 6s models") 3 has risen about 24% since January last year, potentially helping the EV maker rake in record revenue in the third quarter. Wells Fargo said Tesla is likely the [biggest beneficiary of the Biden administration’s new consumer tax credits to incentivize North American battery and EV production](https://www.financedigest.com/exclusive-volvo-readies-ev-blitz-in-biggest-product-revamp-under-geely.html "Exclusive: Volvo readies EV blitz in biggest product revamp under Geely"). Musk also raised hopes of a share buyback earlier this month when he said “Noted” on Twitter in response to a major individual [investor’s call for a stock](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency") buyback. Such a move could benefit Musk, whose 15% stake in Tesla makes him its biggest stakeholder, and help him raise cash to [fund his $44 billion](https://www.financedigest.com/uk-investors-add-1-2-billion-to-equity-funds-in-march-calastone.html "UK investors add .2 billion to equity funds in March – Calastone") deal to take Twitter Inc private. Some experts say Musk may need to sell up to an extra $3 billion in stock after the [earnings announcement to help fund the deal](https://www.financedigest.com/french-uber-drivers-to-earn-more-than-8-per-ride-after-union-deal.html "French Uber drivers to earn more than per ride after union deal"). If there is a big [sale of Tesla stock by Musk](https://www.financedigest.com/musk-says-tesla-price-cuts-triggered-demand-2023-sales-could-hit-2-million-vehicles.html "Musk says Tesla price cuts triggered demand, 2023 sales could hit 2 million vehicles") after earnings, that will be a strong sign that the Twitter deal is on the cusp of closing,” said Adam Badawi, a law professor at UC Berkeley. FUNDAMENTALS \\* Analysts are expecting Tesla’s third-quarter revenue to rise about 60% to $21.96 [billion and earn $1 per share](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3") when it reports results on Oct. 19 – Refinitiv Data [WALL STREET](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") SENTIMENT \\* Of 43 analysts covering the company, 27 [rate the stock](https://www.financedigest.com/uk-stocks-slip-as-rate-hike-worries-grip-investors.html "UK stocks slip as rate hike worries grip investors") “buy” or higher, 10 have a “hold” rating and six have “sell” or lower \\* The median [price target](https://www.financedigest.com/hsbc-ups-price-targets-on-greek-banks-with-eurobank-piraeus-top-picks.html "HSBC ups price targets on Greek banks, with Eurobank, Piraeus top picks") is $325, an 14% increase since at the start of 2022 QUARTER [ENDING REFINITIV IBES ACTUAL BEAT](https://www.financedigest.com/geberit-reports-q1-beat-despite-end-of-bathroom-renovation-boom.html "Geberit reports Q1 beat despite end of bathroom renovation boom"), EPS ESTIMATE MET, MISSED June 30 2022 0.60 0.76 Beat March 31 2022 0.75 1.07 Beat Dec. 31 2021 0.79 0.85 Beat Sept. 30 2021 0.53 0.62 Beat ​​June 30 2021 0.33 0.48 Beat March 31 2021 0.26 0.31 Beat Dec. 31 2020 0.34 0.27 Missed Sept. 30 2020 0.20 0.25 Beat (Reporting by Akash Sriram in Bengaluru and Hyunjoo Jin in [San Francisco; Editing by Anil D’Silva)](https://www.financedigest.com/paul-jasper-joins-rimon-laws-san-francisco-office-as-partner.html "Paul Jasper joins Rimon Law’s San Francisco Office as Partner") --- This blog is powered by Superblog. 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