This month is occupied with Tesla Motors Inc. (NASDAQ:TSLA) events as it plans to reveal a product on Wednesday, report its third-quarter earnings on October 26, and display Solar Roof on October 28.
Such upcoming catalysts for the company can increase Tesla Motors’ share prices ahead of the earnings release, enabling several analysts to believe the company might report strong results. TSLA can report a non-GAAP profit, but nothing can be said at this time. What we know is a direct relation with Tesla Motors upcoming events and its positive impact on stock price.
A sell-side firm Baird’s analyst Ben Kallo is amongst those analysts who believe the company is on the right track. The firm believes the third-quarter results for the Tesla Motors will be noisy as it is phasing out from the non-GAAP reporting. The company has been reporting annual losses since its inception.
The firm expects TSLA to report non-GAAP revenue of $2,408 million, compared to the Wall Street consensus of $2,340 million. The Street expects an EPS of $0.04.
Ben Kallo recommends a Buy rating on the stock, believing the main catalyst for Tesla Motors is Gigafactory, which will likely take several years to complete. However, the factory can smoothly increase the production for Tesla battery cells and solar products. It has entered a partnership with Panasonic to make photovoltaic cells at a facility in Buffalo, New York, which was said to be a SolarCity plant. Tesla Motors is expected to convey more information about its collaboration with SolarCity in the third-quarter results.
Considering many upcoming events, Tesla Motors stock will likely rally during the month. As the Street is expecting, if Tesla delivers impressive numbers over the earnings release, the stock can further see a tailwind, blessing investors. However, a slight delay or problem in the delivery target can weigh down the stock.
Tesla Motors stock currently trades at $198.89, up 2.54%, as of 12:29 PM EDT.