Tesla is preparing to report earnings for the first quarter of 2024 facing reduced expectations

Production issues and rising competition are likely to cause a drop in Tesla’s Q1 2024 profits.

Financial experts are predicting a steep decline in profits per share (EPS) for Tesla Inc. (NASDAQ: TSLA) when the company reports its first-quarter 2024 results after the market closes on April 23.

Following a sharp decline from $0.73 in Q1 2023, the current average EPS estimate for Q1 2024 is $0.39. If the estimates for sales are correct, they would represent a 2% decline from the previous year, coming in at around $22.95 billion.

Production ramp-up troubles with the revised Model 3 and plant shutdowns have led to delivery deficits, among other recent obstacles experienced by the electric car maker.

Therefore, after predicting 1.81 million cars to be delivered in 2023, experts have reduced their delivery predictions for 2024 to 1.77–1.84 million. Analysts are bracing for weaker-than-expected results and have lowered their price targets and profit expectations as a consequence.

Concerns over delivery figures and unfavorable profit revisions caused Tesla’s shares to fall by nearly 30% in 2024. Instead of concentrating on cheaper consumer versions like the widely anticipated Model 2, the business seems to be moving its strategy towards building its self-driving robotaxi platform. Investors are now wondering how the firm will expand in the future due to this change in focus.

In addition to problems within the company, authorities are looking more closely at Tesla, especially over the Autopilot technology and other safety issues. Rivals like BYD are eating into Tesla’s market share in the vital Chinese market, which the business has been struggling to overcome.

Revenues increased by 19% to $96.77 billion in 2023, leading to a total of $3.12 in earnings per share for Tesla.

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