Keep a Close Eye to This Metric in Tesla’s Upcoming Report

Tesla (NASDAQ:TSLA) will release its latest earnings report this January, the 26th. Compared to earlier releases, this one has got investors waiting for it since the previous one had shown a blowout in yearly vehicle deliveries.

In the best-case scenario, Tesla’s numbers for this year’s would be similar, if not better. If that is the case, it would tell investors when this report comes out.

Having said that, we’ll tell you about a metric you want to keep a close eye on since it will confirm or deny these prospects.

You Should Focus On Management’s Expectations

Overall, the clearest form of information that investors can get comes from management’s expectations. More specifically, the expectations for the full-year performance. 

Here’s our recommendation on how to interpret this data.

Last year, Tesla’s 12-month deliveries grew by 87%. And the year prior, they rose by 36%. Both are remarkable feats, given that the pandemic is still ongoing. But that is still not a sign for you to get entirely comfortable.

With the realization that some pandemic-based struggles are still hurting Tesla, you should keep your expectations in check. Do not wait for a repetition of this 87% growth. Nonetheless, don’t expect a relatively low growth of 36% either. Make a compromise instead, like 50%.

In essence, if management expects vehicle deliveries to grow by 50% or more, you’re in the clear. Tesla is set for yet another great year. 

Do we believe that Tesla will manage such numbers? When you account for the fact that Tesla just opened two new factories, that feat should be a piece of cake. So we are not worried in the slightest, and neither should you.