- Tesla is set to report earnings, with Wall Street focusing on its core auto business performance.
- Analysts will be watching profit margins amid fading hype around Tesla’s robotaxi.
- Tesla stock is down more than 12% this year, contrasting with the S&P 500’s 22% gain.
Tesla is set to report earnings on Wednesday after the closing bell.
After recent hype surrounding Tesla’s robotaxi, investors will be refocusing their attention on Tesla’s core auto business.
Earlier this month, Elon Musk revealed Tesla’s long-awaited driverless Cybercab at its “We, Robot” event. While the event generated considerable hype for Tesla, the driverless taxi plan has been met with skepticism over its feasibility and competition with rivals.
In the wake of the event, Wall Street has been shifting its focus back to the company’s core business, with the company still seeing the bulk of its revenue and profits from car sales.
Wall Street is laser-focused on Tesla’s automotive profit margins, which have deteriorated due to aggressive price cuts earlier this year.
The EV-maker’s stock is also down about 12% this year compared to the S&P 500’s 22% gain.
The earnings call starts at 5:30 p.m. ET.
