Tesla is scheduled to report earnings, and Wall Street will be keeping an eye on the company's core auto business. Analysts will be keeping an eye on Tesla's profit margins as the hype around its robotaxis fades. Tesla stock is down more than 12% this year, compared with a 22% rise in the S&P 500. .
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Tesla is scheduled to report earnings after the closing bell on Wednesday.
Analysts will keep an eye on profit margins. Given the recent hype surrounding Tesla's robotaxis, investors are likely to refocus attention on the company's core car business.
Earlier this month, Elon Musk unveiled Tesla's long-awaited driverless CyberCab at the “We, Robot” event. While the event generated considerable hype for Tesla, the driverless taxi plan has also been met with skepticism over its feasibility and competition from rivals.
In the wake of the incident, Wall Street has shifted its focus back to the company's core business, believing that the company still derives the majority of its revenue and profits from car sales.
Wedbush analyst Dan Ives said in a recent note that margins will be a key focus on the call.
“Self-driving, FSD and robotics are Tesla's future, but in the near term deliveries will drive the stock, with eyes on the third quarter, which marks an inflection point for margins and demand in Tesla's story into 2025,” he said. will gather,” he said. Said.
Tesla is on track to match deliveries in 2023, but aggressive price cuts earlier this year have steadily worsened profit margins. The EV maker's stock is also down about 12% this year, compared with a 22% rise in the S&P 500 index.
The earnings call begins at 5:30pm ET.
