joining us now to preview what to expect is Anthony
Cecin senior investment strategist at crane shares, Anthony welcome
to the show. Thanks for joining us this morning
. Now analysts are estimating that Tesla will report earnings
per share of a dollar and three cents will be
key in this report. What are you looking at
? Hi good morning. Thank you for having me
. So, so Tesla recently kind of missed the
Q three uh deliveries by by 15,000. It was
it wasn't too bad but that kind of suggests a
little bit of a downside to the to the actual
consensus of a P. S. So so that's
gonna be interesting to see also, we want to
see if the margins have recovered from the queue to
slow down special due to the lockdowns um, in
china. So there are many things to also follow
in this report. One of the things I'm looking
for is the forecast for demand for Elon musk and
his team, especially in light of of higher rates
and and an economic slowdown. I don't think that
should impact demand in a big way as demand has
been very strong and it's every increase in prices has
been absorbed. Uh, and also the inflation reduction
act should also counter uh, that that kind of
slow down and demand but also it's it's good to
hear what he has to say. So it's always
an interesting call actually recommend people listen to the earnings
call. There's always some good anecdotes coming out of
that call. Certainly now the e. v.
maker did disclose that produced a total of 365 923
vehicles in the third quarter of this year while delivering
more than 343,800 vehicles. Are these numbers enough to
impress investors? I mean these are record numbers,
right? So so just like keeps keeps uh you
know, beating their their previous numbers and I think
that's only going to increase as the giga factories in
Austin Berlin ramp up even even more. Uh so
uh but but also the estimates are are really high
too. There's a high bar to beat especially when
you have a company as successful as Tesla. That
has been beating all their numbers for the past uh
many for the many recent earnings report. You know
, analysts are gonna naturally increase increase that number even
more. And at some point Tesla is going to
have to miss but that's not really a testament of
the business or or where the business is heading.
Uh, so, so I think these are very
good numbers. Now. Tesla has had difficulty in
recent months meeting customer demand due to global shortages of
materials used in auto manufacturing. So how can the
company get around that? Are we expecting to see
it take a big hit there in the report.
Right. So so in the past two quarters we
haven't seen any hits or any any actually setbacks from
from the high metal prices. And one of the
reasons is because these companies have been getting ready for
this, right? The Tesla B. Y.
D. S. The neos the expand have been
getting ready for this. They've been investing in mind
, they've been you know, buying materials uh they
have they have contracts with bathroom makers, right?
The new the new entrance or even the traditional automakers
who have not get ready for this like ford and
GM are having a tougher time getting access to these
materials. So I don't expect any any big deviation
from from the forecast. But we're looking at Tesla's
delivery time and you're noticing it's been increasing a little
bit so it's good to hear to see if there's
anything new there. But if metal prices continue to
be elevated for a longer time then I think at
some point that's going to impact but that's why you
know when you invest in the electric vehicle thing,
you have to invest in the whole ecosystem. Not
just the Tesla, which a lot of people tend
to review the whole ecosystem with Tesla, you have
to look at the raw materials, the mining companies
, the battery makers, the infrastructure builders. So
that's as as a as a as a package you
know you get I think much better exposure to the
Tv ecosystem and that's what we try to provide a
crane chairs with cars, KRS, which is the
crane chairs, electric vehicle in the future, mobility
T. F. Now Anthony, we have to
talk about Elon Musk and Twitter after all this back
and forth. He's jumped back in the game to
purchase the company. He did revive that bid to
buy the company at the original price which is of
course$54.20 a share. So are we likely to
see him sell more shares to fund this deal?
What would that mean for Tesla? Yes potentially.
Uh you know potentially uh you know he may he
may continue to sell shares but but you know that
that doesn't really relate to the business itself. What
I worry about is his focus right? I think
we've seen multiple kind of comments events or or some
kind of uh you know focus in terms of twitter
buying twitter, not buying twitter kind of uh distract
a little bit from from the Tesla story and we're
seeing the stock down a little bit not just because
of what's happening in the company but also because I
think in my opinion what Elon musk is doing on
twitter. Uh so so so so that's uh you
know important to to have him focused on Tesla specifically
. Uh that's you know I think investors want to
see that happen. Yeah Anthony and of course that
coming at a time when competition in the E.
V. Space is really ramping up here, Anthony
thank you so much for joining us this morning.
That's Anthony 16 senior investment strategist at green chairs