Tesla, Inc. (TSLA) is slated to report earnings this week as part of a significant earnings schedule. Year-to-date, the stock has underperformed relative to the S&P 500, down approximately 13%. The company is expected to see earnings grow by 33% year-over-year despite recent bearish revisions to earnings per share (EPS) and sales estimates, which have dropped. Sales are projected to increase by 14% compared to the same period last year.
For the latest quarter, Tesla delivered 358,000 electric vehicles (EVs), falling short of expectations. The company’s gross margin has been declining over the years, raising concerns about profitability as it continues to invest significantly in AI infrastructure to drive future growth. Key metrics regarding margins and spending levels towards AI will play a critical role in determining investor sentiment following the earnings release.
