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Tesla Q1 Earnings Preview: What Investors Should Know Heading to print today

Tesla, inc. TSLA In the spotlight on Wednesday, the electric vehicle manufacturer prepares to release its first-quarter financial scorecard.

After the earnings report, Tesla management led by the CEO Elon Musk, A question-and-answer session is scheduled for 5:30 p.m. ET.

Expectations in numbers: Tesla is likely to post a 71% year-over-year increase in fourth-quarter revenue and quarterly marginal growth. A consensus forecast, compiled by Benzinga Pro, indicates that the company could more than double its net profit compared to last year.

Tesla posted record deliveries of 310,048 vehicles for the first quarter. Assuming the average selling price of cars remains at fourth-quarter levels of $50,820, auto revenue, excluding regulatory approvals, would come in at about $15.8 billion. To this, organizational and other revenue will be added to arrive at the total revenue.

Gary Black’s Future Fund Gave a bullish EPS forecast of $2.50, citing a better-than-expected gross margin arising from a better mix of Model 3 LR and Model Y performance variables in the US

Credit Suisse analyst Dan Levy The EPS estimate is $2.56.

Other key metrics:

Regulatory Credits: These credits rose to $314 million in the fourth quarter from $279 million in the third quarter. Tesla is often criticized for increasing the margin it gives out credits, as it can sell these credits to other car manufacturers and realize almost the entire amount as profit.

Auto Margins: This metric has been on an expansionary path, but is expected to come under pressure this quarter.

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“Margins remain a key focus amid cost inflation – and any comment on margin risk could be negative for the stock,” Credit Suisse’s Levy said in a recent note.

The analyst expects gross margin, excluding credits, to reach 26.6%, impacted by cost inflation and production inefficiencies.

Related link: Elon Musk has these 3 options after his poison pills on Twitter; “It’s now a high stakes poker game.”

Elements of focus on earnings call: The three-week shutdown of Tesla’s Giga Shanghai has investors worried endlessly, given its importance as an export base and its healthy impact on the sidelines. Production started on a small scale and is expected to increase over the coming days.

“The key question for tomorrow is how bad the production problems in China are and what that means for deliveries in the second quarter and the rest of the year,” Wedbush analyst Daniel Ives She said.

The analyst estimates that nearly 50,000 units were lost due to the three-week plant shutdown. He added that the way Tesla could ramp up production could affect the impact of production in the future. Credit Suisse expects a shortfall of 90,000 for second-quarter deliveries.

Amid the production disruptions, it remains to be seen whether the company reasserts its long-term production growth direction of 50%.

Investors may also want to know how the ramps at newly opened Gigas in Berlin and Austin are approaching, the Cybertruck launch schedule, and more details about the Robotaxi service Musk announced at the Cyber ​​Rodeo event.

With Tesla hinting at another stock split, the potential split ratio is of interest to many retail investors, as evidenced by shareholder questions collected by the company.

Musk can be asked about his interest in buying a social media platform Twitter, Inc. TWTRHe plans to fund a potential purchase and whether it will in any way reduce his focus on his pioneering electric car business.

Related link: Why this analyst thinks Tesla’s growth could “shock Wall Street” for several years

Take the TSLA stock: Tesla shares peaked at $1,243.49 on November 4, and then were seen moving in a wide range. Supply chain problems and market-wide pessimism amid uncertain Fed rate expectations put pressure on the stock at the start of 2022. After bottoming in late February, the stock continued its way back to a near-term high of $1,079 in early April.

Musk’s aggressive attempt to buy Twitter did not do well with investors, and the stock has fallen from its peak.

If the stock can maintain the support near $975, further upside is likely. A dip below the level could bring it back to around $900.

The average analyst price target for Tesla stock, according to TipRanks, is $1,006.04, indicating a modest decline from current levels.

Tesla shares closed Tuesday’s session 2.38% higher at $1028.15, and down 1.18% to $1016.06 Wednesday morning, according to Benzinga Pro.

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