Tesla earnings: ‘Warpath’ on prices puts margins in the spotlight

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Investors will parse the effect of recent price cuts on Tesla's margins and will be keen to hear comments around demand for the company's EVs.

Tesla Inc. is scheduled to report first-quarter earnings after the bell Wednesday, with investors focusing on the impact of another volley of price cuts on margins and any color around demand for the company’s EVs.

Tesla TSLA is on a “warpath” and “maintaining its aggressive approach to pricing,” Alex Potter at Piper Sandler said. “We think investors should expect relentless price cuts to continue.”Recent moves suggest that whenever wait times for Tesla’s EVs sink to four to six weeks, the EV maker moves to adjust prices, the analyst said.

Revenue: The analysts surveyed by FactSet are calling for sales of $23.8 billion for Tesla, compared with $18.8 billion in the first quarter of 2022. Estimize is expecting $24.5 billion in revenue for the quarter.

 

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