Tuesday's Market Minute: Previewing Tesla (TSLA) Earnings

Tesla TSLA reports second quarter earnings after the bell on Wednesday. Zacks expects EPS to be around $1.90 and revenue of $17.31 billion. While shares are up over 7% on the month despite CEO Elon Musk’s very public squabbles with Twitter TWTR, they are down over 32% year-to-date.

China’s continued lockdowns are hitting the company’s Shanghai factory, its most productive, although it is reportedly planning to expand its Texas Gigafactory – though Musk recently called that plant and its German plant “money furnaces”. Tesla is also reportedly in the middle of layoffs, with Musk warning 10% of jobs could be cut in a company email.

Taken altogether, this could signal that Tesla’s production numbers could disappoint, and its profit could take a hit as well. Higher input costs due to inflation and a strong U.S. dollar could also drag Tesla’s report down, although that could be offset by higher vehicle prices. However, higher vehicle prices could impact demand – investors will be watching order numbers.

However, whatever comes next for the stock, it’s up premarket today. Tune into the TD Ameritrade Network for earnings coverage and more

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