Tesla Inc. is expected to report first-quarter results on Wednesday, with Wall Street bracing for a loss following two quarters of profits and hoping for better news on production and demand.
It’s also scheduled to take place two days before an event aimed at showcasing Tesla’s autonomous driving capabilities. In order to drive down unit costs, Tesla really needs to be operating at high-capacity utilization rates due to the high fixed costs of auto manufacturing, Nelson said. “So we could see a jump in its per vehicle costs,” he said.
The quarterly report is also the first chance for the market to look at Tesla’s cash reserves and liquidity situation after it had to shell out $920 million on convertible senior notes that came due during the quarter.Earnings: Analysts at FactSet expect Tesla to report an adjusted loss of 94 cents a share. That would compare with an adjusted loss of $3.35 a share in the first quarter of 2018 and a GAAP and an adjusted per-share profit in the two previous quarters.
Stock: Tesla shares have lost more than 5% in the past 12 months, and more than 18% so far this year. That contrasts with gains of around 7% and 16% for the S&P 500 index. SPX, +0.16% Tesla stock has underperformed General Motors Co. GM, +0.78% and Ford Motor Co. F, +0.53% shares. Investors also will want more clarity about Tesla’s plans to close several, if not most of its stores.“Tesla’s armor showed signs of cracking in the first quarter,” said Jessica Caldwell, an analyst with Edmunds. About half of the vehicles Tesla produced in the first quarter were shipped overseas, according to Edmunds estimates, “which signals weakening domestic demand,” Caldwell said.
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