- Tesla reports fiscal fourth-quarter and full-year 2019 financials after markets close.
- The earnings report is important as it comes amid a record-breaking rally for Tesla stock. Since the company’s third-quarter earnings release in October, shares have surged nearly 120%.
- Here’s what four analysts are saying about the automaker ahead of the earnings report.
- Watch Tesla trade live on Markets Insider.
- Read more on Business Insider.
Tesla, the Elon Musk-led automaker, will report its much-anticipated fiscal fourth-quarter and full-year 2019 financials Wednesday after markets close.
Wall Street expects Tesla to report about $336 million in profit on $7.1 billion in revenue for the fourth quarter. The company posted $7.1 billion in revenue and $390 million in profit during the same period last year.
The earnings report is important following the stock’s meteoric climb since Tesla’s third-quarter 2019 results in October. Tesla reported a surprise return to profitability in the quarter, sparking a rally that’s sent the stock price up nearly 120% since.
The rally continued fueled by Tesla’s fourth-quarter and full-year 2019 vehicle delivery numbers, which were released in early January. In addition, there’s been optimism around the company’s new Gigafactory in Shanghai.
Analysts and investors will be closely watching the company’s margins and full-year 2020 guidance in the Wednesday report. It’s also hoped that the company will give an update on the status of its ramp-up in China, the construction of its Gigafactory in Berlin, and the timing of its Model Y launch or at least further information on the vehicle’s pre-production progress.
The stock price has both re-energized investors betting for the company and roiled short-sellers, or those banking that the stock will go down. As the stock price has surged, Tesla has become the most valuable US automaker of all time, surpassed the market values of Volkswagen and the combined values of Ford and GM, and put Musk closer than ever to a $346 million payout.
At the same time, some analysts are starting to caution investors that Tesla’s rally is too much too fast. In January, Morgan Stanley analyst Adam Jonas recommended selling the equity for the first time in seven years. Still, Morgan Stanley expects that the company will report strong results Wednesday, according to a Tuesday note from the bank.
Tesla has gained roughly 36% year-to-date and was $566.90 per share at Tuesday’s close.
Here’s what four analysts are saying about Tesla ahead of its fourth-quarter earnings release after the bell.