Tesla’s upcoming earnings report is eagerly anticipated, with a focus on profitability, deliveries, and the impact of recent price cuts.
Falling battery material prices are expected to slightly improve profit margins, but they will still be significantly lower than a year ago.
The company faces pressure from price reductions and increased costs related to Cybertruck production.
“They had decent deliveries and we want to see the production numbers stay up and the margins continue to hold in. I think that if we see any weakness in those things, it’s going to make people think, you know, what’s the rest of the year going to look like?” Globalt Investments’ Thomas Martin said.
Other key concerns include demand, supply chain disruptions, delivery targets, and the impact of Elon Musk’s desire for greater control.
“Lower commodity prices are helping, but they (Tesla) are also now passing it through to customers by cutting prices. If you’re in a competitive market, you’re going to just have to pass it through to the customer” Spear Invest’s Ivana Delevska, said.
Questions regarding the next generation of vehicles and Musk’s compensation and control are on also investors’ minds.
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