Tesla Stock Rises Ahead Of Q4 Earnings: What's Going On? (CORRECTED)

Editor’s note: This story has been corrected to reflect that Tesla’s fourth-quarter earnings call is scheduled for 5:30 p.m. ET Wednesday.

Tesla, Inc. TSLA shares rose in premarket trading on Wednesday ahead of the company’s quarterly financial report scheduled for release after the market closes.

The stock climbed up 1.48% to $212.23 in premarket, according to Benzinga Pro data.

This uptick may be attributed, in part, to a renewed risk appetite following streaming giant Netflix, Inc.’s NFLX quarterly results.

Some investors may be seizing the opportunity to enter the stock at its current affordable valuation. However, analysts remain cautious about the upcoming quarterly report, expressing concerns that the core auto gross margin could continue to contract.

There’s additional momentum from a Reuters report suggesting Tesla’s plan to launch a budget model electric vehicle, codenamed “Redwood,” by mid-2025. This news is significant as analysts and investors have been expressing concerns about the absence of a sub-$30,000 car, seen as crucial for boosting overall sales.

Top shareholder questions indicate a keen interest in the low-end EV. The most upvoted question, “Given that you moved the start of the next-generation compact vehicle production to Austin, has the timeline improved so that we might see next-generation platform vehicles in 2025?” has garnered 3,800 upvotes. Shareholders holding 7.1 million Tesla shares seek an answer to this question.

Given the evident interest in the low-end EV, it is likely that management will address this question during the earnings call, scheduled for 5:30 p.m. ET following the earnings release.

See Also: Everything You Need To Know About Tesla Stock