Taking a look at Tesla ahead of its earnings report

Yahoo Finance markets report Ines Ferré takes apart Tesla ahead of its Q3 earnings

Video Transcript

ADAM SHAPIRO: I wonder if we can convince our managers to pay the ASCAP here, get the licensing rights, so that whenever we do a Tesla story, we can play the Pointer Sisters song, "Fire." You know, the lyrics, I'm riding in your car. And anything about Tesla, on fire, no doubt about that. Let's bring in Ines Ferre because we're going to get earnings after the bell. So basically, I mean, the stock is almost back to where it's traded at 52-week highs. I mean, it's really, it's on fire.

INES FERRE: That's right. It is on fire. There's a lot of optimism going into these quarterly results that will be announced after the bell today, Adam, and especially because Tesla had recently reported record deliveries in the quarter. So these are the key metrics that the Street will be looking for. The Street's expecting revenue to rise to $13.9 billion. That's versus $8.7 billion for the same quarter last year. Adjusted earnings per share are expected to rise to $1.67 versus $76 posted for the same period last year.

And as I mentioned earlier this month, Tesla announced its deliveries, delivering 241,300 vehicles globally in the third quarter. That's a new all-time high for quarterly deliveries for Tesla. Year to date, the company has delivered 627,500 vehicles globally. That's higher than the almost 500,000 vehicles that it delivered in all of 2020. And the stock year to date is up about 18%. Adam, Seana.

SEANA SMITH: Ines, what about supply chain issues? Because we heard from Elon Musk at the annual meeting earlier this month. He did mention the fact that he does expect to see some supply chain issues here over the next couple-- over the next couple of months. But how big of a headwind is this expected to be for Tesla?

INES FERRE: Well, I think it's certainly something that investors will be paying attention to-- the chip shortage, supply chain issues, and how Tesla has been able to navigate this. We know that in the first quarter, they were able to navigate the chip issue because they said that they had pivoted really quickly to these microcontrollers. And they developed firmware that enabled them to use chips from different suppliers.

But as far as that chip shortage, as far as the supply chain disruptions, as you mentioned, Elon Musk has spoken out about this in the annual meeting recently, saying that it's not just about chip shortages, it's other parts as well. And Musk said, in that meeting, we should be through our severe supply chain shortages in 2023. As for chips, he said in a recent tech conference in Italy that there's a lot of chip fabrication plants that are being built. And I think that we will have good capacity by next year. But certainly, supply chain issues disruptions are something that investors will be keeping an eye out on.

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