Tesla share price: Tesla stock price down, all eyes on Elon Musk-owned company's earnings results

Tesla stock price on Wednesday is down as Elon Musk-owned luxury carmaker is set to announce earnings results. Tesla-TSLA share price is down 1.91 per cent to $434.63. Tesla shares have risen nearly 10 per cent this year, propelled by a record-breaking $1 trillion pay package for Musk that the board proposed last month. The stock is still largely among the laggards in the ‘Magnificent 7’ group of mega-cap stocks.

Tesla is all set to announce earnings results at 4 pm (ET).

Tesla is expected to post a surge in third-quarter results later on Wednesday, thanks to U.S. buyers rushing to take advantage of an expiring $7,500 federal electric vehicle tax credit. But investors and analysts may be more focused on Chief Executive Elon Musk‘s outlook, including whether new, cheaper versions of its Model 3 and Model Y Tesla can keep U.S. customers buying and attract new ones in Europe and Asia.
The new trims – called Standard – are $5,000 to $5,500 cheaper than their predecessors as Tesla shrank the battery, switched to a less-powerful motor and stripped out myriad features – from rear touchscreens to seat-back pockets. The company also temporarily has slashed lease prices on the higher-priced Premium versions.

The cheaper Standard variants as well as Tesla’s offers and discounts to stave off competition globally throughout the year have pressured the company’s once-enviable margins, worrying investors.

Sales of Tesla’s aging lineup declined for the first time last year and analysts expect an 8.5 per cent fall this year, in part because of Musk’s far-right political rhetoric.Analysts expect Tesla to report a revenue of $26.24 billion in the quarter ended September, up 4.2 per cent from a year earlier, according to data compiled by LSEG. Tesla also will report on whether regulatory credits that it sold to makers of gasoline-powered cars to satisfy pollution standards have faded away after policy changes by the Trump administration.Automotive gross margin, excluding regulatory credits, is estimated to be 15.6 per cent, according to 19 analysts polled by Visible Alpha. That is lower than 17.05 per cent, a year earlier.

FAQs

Q1. What is Tesla’s expected revenue?
A1. Analysts expect Tesla to report a revenue of $26.24 billion in the quarter ended September, up 4.2 per cent from a year earlier, according to data compiled by LSEG.

Q2. When will Tesla announce earnings results?
A2. Tesla is all set to announce earnings results at 4 pm (ET).