Tesla Inc TSLA shares are trading higher by 1.55% to $297.90 Wednesday morning. Traders and investors are watching for the company's second-quarter earnings report, which is confirmed for after the market close. Tesla is expected to report EPS of 82 cents on revenue of $24.48 billion.
What To Watch For Ahead Of Earnings
Investor concerns ahead of the earnings report primarily revolve around the auto gross margin, excluding regulatory credit, as price cuts and discounts are expected to have potentially impacted margins negatively.
Gene Munster, Managing Partner at Deepwater Asset Management, remains less apprehensive about the margin decline. Munster anticipates auto gross margins, excluding credits, to be around 17-18%, while the market consensus is set at 19%.
"I don’t think that’s gonna be an issue for the stock ultimately because I think the commentary from the CFO is going to be to expect improving gross margins throughout the back half of the year," Munster said...Read More
According to data from Benzinga Pro, TSLA has a 52-week high of $314.67 and a 52-week low of $101.81.
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