Tesla earnings updates: Wall Street looks for robotaxi, AI progress with stock down 14% YTD

Tesla earnings are upon us again.

After a stretch of disappointing car sales, Wall Street investors are looking for updates that will confirm the bullish view that Elon Musk’s company is more than an EV-maker.

With deliveries already reported earlier in April, the focus of the earnings call for investors will be any news on the big tech initiatives, namely, robotaxis, AI, and robotics.

Investors head toward the earnings call with the stock down 14% year to date. The company will publish its results shortly after the 4 p.m. ET closing bell on Wednesday. The call with analysts will begin around 5:30 p.m. ET.

The bulls and bears are divided on Tesla’s place in the AI era, Wedbush says

Wedbush analysts, led by Tesla mega bull Dan Ives, expect AI efforts and the continued robotaxi rollout to be the main events of the earnings call.

“We believe the Street is at a crossroads with Tesla as the bulls and bears debate how quickly the AI era will take shape over the coming year,” the note read.

The firm, which has a $600 price target and outperform rating on Tesla stock, anticipates Musk will offer some insight into Tesla’s $2 billion xAI investment announced during last quarter’s earnings call, and what it means for investors.

The firm’s price target for the stock implies a 53% gain from current levels.

Wall Street expects $22.27 billion of revenue and EPS of $0.25

First quarter

• Adjusted EPS estimate 35c (Bloomberg Consensus)

• EPS estimate 25c

• Revenue estimate $22.27 billion

• Gross margin estimate 17.7%

• Operating income estimate $823.1 million

• Negative free cash flow estimate $1.86 billion

• Capital expenditure estimate $4.18 billion

Full year

• Production estimate 1.56 million

• Deliveries estimate 1.66 million

• Capital expenditure estimate $19.37 billion

Source: Bloomberg data

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