Anthony Sassine of KraneShares joined Cheddar News to discuss the release of Tesla's Q3 earnings. 

Anthony Sassine, the chief financial advisor for senior investment strategies at KraneShares, joined Cheddar News to discuss the release of Tesla's Q3 earnings. "So Telsa keeps beating their previous numbers, and I think that's only going to increase as the gigafactories in Austin and Berlin ramp up even more," he said.

What to Look Out For in Tesla Q3 Earnings

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 information 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. I 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 been 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 gotta I think much better exposure to the tv ecosystem and that's what we try to provide the 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