Musk drama, Cybertruck numbers: What to watch for in Tesla's earnings report
Tesla is set to report its fourth quarter earnings, and there are several key factors to keep an eye on.
Tesla CEO Elon Musk's latest drama
During the earnings call, it is expected that questions will be raised about Elon Musk's recent threat to pursue AI initiatives outside of Tesla if the board does not grant him more stock.
This drama will likely generate significant discussion and speculation.
Investors and analysts will be curious to see how this situation unfolds and what it may mean for Tesla's future.
Sales and product outlook
Last year, Tesla faced tough competition from Chinese automaker BYD, who surpassed Tesla as the world's bestselling electric vehicle company.
Despite increasing deliveries by nearly 20%, Tesla fell short of its 50% annual target in terms of sales growth.
During the earnings report, it will be interesting to see if Tesla addresses this competition and outlines its plans to regain its position as the leading electric vehicle manufacturer.
Margins, margins, margins
Tesla has been implementing price cuts to boost sales, but this has come at the expense of per-vehicle profits.
While sales have reached a new record in Q4, it will be important to analyze Tesla's profit margins during the earnings call.
Analysts will be looking for insights into how Tesla plans to balance sales growth and profitability moving forward.
Ripped from the headlines
In addition to the aforementioned topics, there may also be questions about Hertz halting its electric vehicle plans, as Tesla is a major supplier for the company.
Furthermore, Tesla and other electric vehicle makers have faced criticism for battery and charger issues during the recent Arctic blast.
The earnings call could shed light on how Tesla plans to address these challenges and ensure the reliability and performance of its electric vehicles in extreme weather conditions.
