Tesla earnings live updates: Stock and margins in focus ahead of report

• Tesla is expected to report profits as Wall Street focuses on the performance of its core automotive business.
• Analysts will be keeping an eye on profit margins as the hype surrounding Tesla’s robotaxi fades.
• Tesla shares have fallen more than 12% this year, in contrast to the S&P 500’s 22% rise.

Tesla is expected to report earnings after the closing bell on Wednesday.

Analysts will be watching profit margins closely. After the recent hype surrounding Tesla’s Robotaxi, investors will take a closer look at Tesla’s core business, the automotive industry.

earlier this month Elon Musk unveiled Tesla’s long-awaited driverless Cybercab at its “We, Robot” event. While the event generated significant hype for Tesla, the driverless taxi concept was met with skepticism about its feasibility and how it competes with competitors.

In the wake of the event, Wall Street has shifted its focus to the company’s core automotive business, as the company still generates the majority of its revenue and profits from selling cars.

Wedbush analyst Dan Ives said in a recent note that margins will be the focus of the conference call.

“While autonomy, FSD and robotics are the future for Tesla, near-term deliveries will boost the stock and the stock market will focus on Q3, showing an inflection point between margin and demand in Tesla’s history through 2025,” said he said.

Tesla is on track to hit 2023 deliveries, but profit margins have steadily deteriorated due to aggressive price cuts earlier this year. The electric vehicle maker’s stock has also fallen about 12% this year, compared with the S&P 500’s 22% rise.

Earnings calling begins at 5:30 p.m. ET.