Tesla Bull Adam Jonas Says EV Maker's Q3 Margins, Earnings Face Headwinds

Morgan Stanley analyst and Tesla bull Adam Jonas unveiled his expectations for Tesla Inc‘s TSLA third-quarter performance ahead of the company’s earnings date.

Tesla Thesis: Jonas sees Tesla’s gross margins falling further to 17.5% in the third quarter as compared to 18.1% in the second quarter and 19% in the first. The analyst further sees a U.S. GAAP EPS of $0.56 as compared to the $0.78 reported in the second quarter and lower than the consensus estimate of $0.65.

The analyst noted after a Bull/Bear lunch with investors that there is a ‘cautious’ sentiment around Tesla earnings estimates for the last two quarters of the year.

“Many are wondering if Tesla can grow earnings at all in FY24,” Jonas wrote, while noting that there is little interest amongst investors in Tesla’s Dojo or AI efforts.

The investors are now looking to the company’s forward outlook rather than the result itself to drive stock performance, he added.

About Cybertruck: Jonas also noted that there is very little enthusiasm around Tesla’s upcoming vehicle- the Cybertruck. If the vehicle’s launch is delayed further, Tesla might continue to resort to price cuts to keep up demand, he added. However, if Tesla announces a launch event date with the results next week, it could be a positive for the stock, he added.

Tesla will post its third-quarter results on Oct. 18.

Price Action: Tesla shares closed down 0.24% on Wednesday at $262.99.

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