Tesla's Q3 Results: Analysts Have Different Opinions

Tesla Inc. (NASDAQ:TSLA) will announce its third quarter results for 2023 on Wednesday after the market closes. Analysts have differing forecasts regarding the company's future.

Notable Tesla analyst Troy Teslike believes the electric vehicle giant will surpass analysts' average estimates in its third quarter results. Teslike forecasts a Non-GAAP earnings per share of $0.66, exceeding analysts' prediction of $0.59. He also expects the company to generate $28.4 billion in revenue, which is above analysts’ estimate of $27.3 billion.

However, Teslike's prediction is lower than other analysts' expectations in one key metric: gross profit margin. While Teslike anticipates a margin of 17.2%, others expect 17.3%.

Morningstar’s Senior Equity Analyst Seth Goldstein issued a sell rating on the stock, noting that the market may be moving with potentially excessive enthusiasm. During CNBC's Closing Bell Overtime program, he emphasized that it is premature to celebrate the robotaxi project and that such a system will not be initiated without safety drivers. He also mentioned that Tesla’s autonomous vehicle technology is still in the early testing stages and suggested that the market is assuming it will surpass Waymo.

Goldstein reiterated his sell stance while agreeing that Tesla has many positive aspects surrounding its long-term developments, highlighting optimism towards Optimus humanoid robots and the company’s commitment to its battery business.

Long-time Tesla advocate Tom Nash made a bold prediction, stating that the company’s stock could double from current levels to reach $900 within 12 months. Nash said, “Tesla will reach the $900 level, no matter what, it will succeed,” outlining the developmental directions. He pointed out that factors such as Artificial Intelligence, full self-driving, robotaxi, energy, and robotics technology position the company as a leader in the most significant trends of the future.