Tesla Earnings Come Today. For The Stock, Watch For Two Things.

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Margins and pricing will be in focus when the company releases its results after Wednesday's close.

Tesla is the most valuable auto stock in the world and one of the most volatile stocks in the U.S. market. It’s also led by the world’s richest human. That combination always makes Tesla earnings a must-watch.

Tesla has cut prices—significantly—several times in the past few months to help drive more sales volume as interest rates rose, the economy slowed, and EV competition heated up. The strategy has helped year-to-date volumes jump about 45% year over year, and Wall Street is looking for earnings per share of 72 cents from sales of $23.9 billion.

“The key items we are watching from the results are margins in light of the lower volume and pricing,” says Ivana Delevska, chief investment officer of Spear Invest. “On the positive side, one area that could support margins that maybe investors don’t appreciate is software sales. We expect higher uptake given the $3,000 price cut which would be accretive to total company margins despite being priced lower.

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