SpaceX, Tesla Earnings on Deck: Key Metrics to Watch

The Q3 earnings cycle continues to roll along, with this week's reporting docket highlighted by two Elon Musk-led companies, SpaceX SPCX and Tesla TSLA. Both releases will undoubtedly receive considerable attention, with SpaceX reporting Tuesday, October 20th, followed by Tesla on Wednesday, October 21st.

Given the importance of the releases, let's take a closer look at a few key metrics to watch.

Tesla: Margins and Deliveries

Tesla has already released its Q3 delivery figures, reporting 486.5k vehicles delivered throughout the period. While the figure reflected a modest 2% YoY decline, it still comfortably exceeded expectations, providing some positivity heading into the release.

Importantly, margins will be another major focus, particularly as the EV manufacturer continues navigating a competitive pricing environment. Company-compiled consensus estimates suggest a gross margin of 17.9%, with operating margin expectations sitting at 2.5%.

Investors will also be closely monitoring whether the better-than-expected delivery results translate into improved profitability, especially given the company's continued investments in autonomous driving and robotics.

SpaceX: Starlink Growth

SpaceX's upcoming release will mark its second quarterly report since going public in June, with results from its Starlink business likely to receive considerable attention.

The company's Connectivity segment, which includes Starlink, has been a major bright spot, with Q2 revenue climbing 66% YoY to $4.3 billion. Segment operating income similarly jumped 79% to $1.7 billion, reflecting strong profitability. Importantly, Starlink subscribers doubled YoY to 12 million, with average revenue per user holding steady sequentially at $66.

Continued subscriber growth, alongside increasing adoption from enterprise and government customers, will be key metrics to monitor. Strong results would further strengthen the growth story, particularly as SpaceX ramps up spending on its AI-related businesses.

Bottom Line

Both SpaceX SPCX and Tesla TSLA are set to release quarterly results this week, with Starlink growth and Tesla's automotive profitability serving as key areas of focus.

For Tesla, improving margins alongside solid delivery volumes would be a positive development, while continued Starlink momentum would reinforce the favorable longer-term outlook for SpaceX.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research