Following yesterday's $13.86 (-3.09%) hit, the stock is trading up a bit, +$2.19 at $437.39.
Here's Al Root at Barron's, January 27:
Tesla stock rose early Tuesday, ahead of the company’s fourth-quarter earnings report, earnings that are expected to be, well, not good.
Shares of the electric vehicle maker were up 0.5% at $437.42 in premarket trading, while S&P 500 futures were up 0.2% and Dow Jones Industrial Average futures were down o.5%.
For the quarter, Wall Street is looking for earnings per share of 43 cents from sales of $24.6 billion. A year ago, Tesla reported EPS of 73 cents from sales of $25.7 billion.
Sales are down with EV sales. Tesla delivered about 418,000 vehicles in the fourth quarter, down from about 496,000 a year ago. The loss of the $7,500 federal purchase tax credit in September pushed sales into the third quarter.
Operating profit margins are expected to be under 5%, down more than one percentage point year over year, hurt partly by falling regulatory credit sales. Tesla can sell zero-emission vehicle credits by producing more than its fair share of zero-emission vehicles. Those credits have been devalued by changes in environmental policies during the second Trump administration.
“It’s going to be very ugly,” said Shay Boloor, chief market strategist at technology research firm Futurum. “Fundamentals make [Tesla] look like a maturing auto business facing pricing pressure and competition.”....
....MUCH MORE
