PREVIEW: Tesla Q4 earnings expected to rise despite delivery shortfall
Tesla Inc., currently ranked 8th on the list of companies with the largest market capitalization, with a value of around $1.277 trillion, will release its fourth-quarter earnings after today's trading session. Investors are closely watching the results, given the mixed signals from recent developments surrounding the automaker.
On the positive side, Tesla could further benefit from Elon Musk's close relationship with the current US administration, which could play a role in its future prospects. However, missed delivery targets and price adjustments in key markets add an element of uncertainty.
Wall Street experts project the company will report revenue of $27.2 billion, reflecting an 8% year-over-year increase while earnings per share (EPS) could rise to $0.78. Tesla recently announced fourth-quarter deliveries of 495,570 units, falling short of forecasts that predicted over 500,000.
In addition to this shortfall, the automaker made headlines in January for recalling 239,382 vehicles in the United States and 1.2 million in China. Moreover, Tesla cut the price of its basic autopilot in Canada by 65% and announced plans to raise car prices there on February 1. The launch of a new Model Y version in North America and Europe also stirred interest. Shares dropped 0.22% during premarket operations to sell at $397.37 apiece.