TSLA Earnings Prediction + 2021’s Battery Boom
The global electric vehicle (EV) market is booming thanks to one tech innovation: Batteries.
And we’re excited to see what this means for our favorite EV — Tesla.
TSLA earnings are coming and we have some predictions.
With Tesla leading the way, more and more car companies are increasing their stake in EVs. This is creating a battery boom!
And we have a stock that has huge potential for this rise!
Even Tesla has mentioned investing in a company like this. It’s an innovator that’s already up more than 100% in just over two months.
This stock is in my Secret Portfolio — my research service that pinpoints the kind of stocks I’d usually keep for myself.
But in America 2.0, I want you to have full access to these recommendations. Click here to see the details.
And be sure to watch today’s video for another key way you can invest in the 2021 battery boom right now:
Tesla’s Q4 2020 Earnings Release
Today, Ian Dyer — senior investment analyst at Bold Profits and co-editor of several trading services — is joining us to answer some burning questions regarding Tesla’s upcoming fourth quarter (Q4) 2020 earnings release and the growing, global EV boom.
Amber: Ian, as seen in this Bloomberg earnings preview table, Tesla is set to report its Q4 2020 earnings on Wednesday, January 27, after the markets close. Analysts are expecting an earnings per share (EPS) of about 99 cents on sales of $10.3 billion for the quarter.
My question to you is: What one or two mega news items do you anticipate being revealed in this next earnings report?
Ian: One of them is that they are moving into India as Paul and I mentioned on the Iancast on Friday. They recently announced they are going to be moving some operations into India. This is a big opportunity for them because India has a young population that is tech driven.
I think there will be a lot of demand for their products there. Hopefully we gain some insight into that. The other thing I am looking for is an update on their solar roofs. Last quarter Elon actually said that the solar roof is going to become a big product in 2021.
He said, ‘It’s a killer product and this will become obvious next year.’ That was last October. I agree. I think it will be one of their best products. Hopefully we will get an update on that as well.
Amber: I love the solar roof. It’s beautiful to look at from what I have seen. Have you seen one in person yet?
Ian: I have not, but I would not be opposed to getting one. Apparently they install them in one day now. It’s cool.
Amber: Talk about progress. That’s awesome. I have another question. In general, electric vehicles and the entire EV market is heating up. Traditional internal combustion engine (ICE) auto makers are making inroads in electric vehicles.
Even though we are Tesla bulls here, it’s always good to keep an eye out on what others are doing. For example, as seen in this tweet here, Volkswagen recently announced that they tripled their EV deliveries in 2020. That’s something to see.
Ian, my question to you: With all the traditional automakers coming to market with their cars, do you see this affecting Tesla’s market share in any way going forward? How do you foresee Tesla continuing to be the leader in EVs going forward?
Ian: 2020 was a crazy year but Tesla actually widened their lead. Some other companies had success, like Volkswagen, but Tesla grew their sales 33% from 2019 to 499,000 cars. If you look at the entire world, other than Tesla, it dropped a little bit.
So Tesla’s lead is actually getting bigger. I think their biggest advantage is that they centered their business around this. Rather than Volkswagen or some of these other competitors that have done the same thing for decades and now are trying to transition.
They need to train more people and hire more people who have the skillsets and also build new manufacturing facilities. It’s a big uphill battle for these other companies. Tesla can’t stay a huge part of the market share forever. Sure, some other companies might grow faster in the short term.
But I think Tesla in the long term is a very solid play. I actually wanted to mention that in Paul’s Secret Portfolio, one of our newsletters, we have a pick in there that’s going to benefit no matter who is in the lead in this race. Tesla said they are going to invest in a company like this.
It’s a company that produces one of the key elements in batteries. Of course with EVs heating up and continuing to grow rapidly, there is going to be a shortage in this. This is a great company to invest in and capitalize on the future EV boom. It’s actually up more than 100% since we added it a couple months ago.
Amber: Amazing. Now that’s what I call spot-on investment picks. For those who do not know, Ian works hand in hand with Paul on Paul’s Secret Portfolio service. It’s an excellent trading service. If you want further details on the service click here.
One last note on Tesla, as seen in this Bloomberg earnings history table, Tesla surprises on earnings an average of 5.82%. One week after reporting earrings, its average absolute price change is 10.2 %. Out of the last nine quarters, Tesla beat earnings estimates six times.
The Growing Global EV Market
As of today, with Volkswagen announcing they tripled their EV deliveries in 2020, every major gas engine automaker is taking strategic steps to electrify their car lineup. This spells an absolute boon for the technology and components that power EVs, especially their batteries.
As seen in this infographic from Delloite Insights, massive growth is coming to the EV market. On closer look, their data shows that by 2021 Toyota targets 30,000 worldwide EV sales, by 2022 Ford plans to have 40,000 EVs in their global portfolio.
By 2023 GM will have 20 EV models in their vehicle lineup, by 2025 Volvo plans to reach one million EV sales, representing 50% of their global sales. By 2030, Mazda projects all their models will be EVs or hybrids and Daimler’s EVs will comprise more than 50% of its portfolio. General Motors Cadillac division will be a majority EV maker.
Per Grand View Research data, EV demand is projected to increase nearly tenfold by 2027. The EV market is expected to grow 858% from $126 billion today, to $1.27 trillion by 2027. This is actually a compound annual growth rate of 38%.
So one of the best ways to play this growing trend is through its lithium ion battery that powers EVs. I would say to consider buying shares in the Global X Lithium & Battery Tech ETF (LIT).
As Paul shared in our internal investment team call yesterday, the Bold Profits America 2.0 megatrends we follow, like EVs, is just getting started. Therefore, expect to see 5, 7 and 10 years of growth investing runway ahead.
Finally, turning toward the U.S. economic calendar week ahead. There will be four major releases. On Wednesday, weekly mortgage applications will post at 7 am. On Thursday, December housing starts will post at 8:30 am.
On Friday, we will have January preliminary market manufacturing and December’s existing home sales at 9:45 am and 10 am, respectively. Of these releases, we will be watching housing starts and existing home sales.
Editor, Profits Unlimited
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.