Tesla is set to report earnings for its first quarter after the bell on Tuesday, delivering an update on its current and future prospects as investor sentiment slides. It comes amid slowing global demand for EVs and pressure on prices from Chinese rivals.
The electric carmaker’s share price is down a more than 40% year-to-date after disappointing Q4 results issued weak and non-specific delivery guidance for the year and missed on deliveries by about 13%.
The company is expected to report adjusted earnings per share of $0.52 on top-line revenue of $22.31bn, per Bloomberg consensus estimates. This would be its first revenue decline in four years.
It is also expected to post $1.49bn in operating profit, a 40% slide from a year ago. In terms of non-GAAP metrics, Wall Street is expecting $1.79bn in adjusted net income, and EBITDA of $3.32bn.
Investors will also be watching for Tesla’s future product roadmap.
It comes as Tesla attempted to boost demand for its EVs on Friday by cutting the prices of three of its five models in the US. It then went on to cut prices around the world during the weekend, including in China, the Middle East, Africa and Europe.
It cut the US prices of the Model Y, Tesla’s most popular model and the top-selling EV, and also of the older and more expensive Models X and S.
Those cuts reduced the starting price for a Model Y to $42,990 (£34,874), and to $72,990 for a Model S and $77,990 for a Model X. It also slashed the US price of its Full Self-Driving driver assistance software from $12,000 to $8,000.
