Tesla is set to report earnings after the bell on Wednesday, with analysts expecting lower revenue and earnings than a year ago. Wolfe Research sees potential positives in a SpaceX merger and the robotaxi business, but estimates earnings below consensus.
Tesla's revenue and earnings per share are expected to have declined, according to LSEG. Analysts forecast a 14.5% drop in earnings and close to a 1% decline in revenue from the prior year. The conference call follows at 5:30 p.m. ET.
Weak last quarter sets the bar
Last quarter, Tesla posted weaker-than-expected earnings, with margins coming under pressure and cash flow turning negative. The company has fallen short of analyst earnings estimates in two of the last four quarters, and it posts a topline beat only 58% of the time, per Bespoke.
Third-quarter deliveries offered a counterpoint. They declined 2% from the year prior but topped estimates, sending the stock surging.
Wolfe Research flags a tough quarter
Wolfe Research is eyeing a potential merger with SpaceX and Tesla's robotaxi business as possible positive developments for the Elon Musk-led automaker. However, the firm is estimating earnings below consensus in a "tough quarter for Auto stocks", according to CNBC's summary of its view.
Earnings season context
Tesla is one of 70 S&P 500 companies reporting this week, alongside Meta. The earnings season is off to a strong start: about 45 S&P 500 companies have reported, and 85% of them exceeded earnings estimates, FactSet data shows.
Both the S&P 500 and the Nasdaq Composite fell last week as traders rotated out of tech stocks over concerns of mounting debt from the AI build-out.
Source: CNBC
Trading involves risk.
Risk Disclaimer
