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Tesla Stock Earnings: 3 Key Things to Watch Ahead of TSLA’s Q4 Report

Tomorrow marks the most important day of 2022 so far for Tesla (NASDAQ:TSLA). The electric vehicle innovator is about to report earnings for the final quarter of 2021. This comes at an excellent time. Tesla stock has been falling since before the week began. It’s down 2% for the day and 11% for the past five. But through it all, analysts remain primarily bullish as rumors of a market crash circulate.

A person walks past the storefront of a Tesla store with several vehicles visible behind a glass door
Source: Ivan Marc /

Investors have plenty of questions about the future of Tesla, but Elon Musk is preparing to answer them. We already know that Tesla surpassed Wall Street expectations for deliveries in Q4 2021, but what does that mean for earnings?

Let’s take a look at what will likely be the earnings call points of focus.

Tesla Stock Earnings: Updated Vehicle Roadmap

Tomorrow will mark the return of Musk to Tesla earnings calls. He missed the last one, but he’ll be back for the most recent quarter. It’s clear that Musk will discuss something about which investors are quite curious — an updated product roadmap.

Tesla recently drew criticism when it revealed that the release of the long-awaited Cybertruck would be delayed. Musk confirmed in the tweet below, though, that the earnings call would bring the updates both fans and investors are seeking.

Electrek reports that a Cybertruck prototype has been delivered to Tesla’s Gigafactory in Austin, Texas. This strongly hints that investors can expect an update on the vehicle’s pricing and timeline, the two factors they have been wondering about. The Austin-based factory will be manufacturing the Cybertruck as well as the Tesla Model Y, another vehicle about which investors have been curious.

For Musk to address questions would be a boon to Tesla stock. He should also address the fully autonomous $25,000 car that the company wants to release by 2023. Specifically, when can we expect it?

Battery Production Acceleration

One of the most common concerns in EV production is that of batteries.

The rush to corner the rapidly growing market has become a race of its own. Tesla is leading it, though. It has secured partnerships with companies in the graphite and nickel mining spaces. Rumors have indicated that there could be others in the works. And while these types of advances will certainly help Tesla stock rise, investors want to hear from the company directly as to its plans for battery production.

Panasonic (OTCMKTS:PCRFY) is slated to begin mass-producing Tesla batteries in 2023. Investors are wondering about in-house battery production, though, as that would likely boost Tesla stock more in the short term. The company should provide an update on the production and number of 4680 battery cells as well as structural battery pack production. Additionally, Tesla should address any potential new mining partnerships. As InvestorPlace Markets Analyst Joanna Makris has discussed, the company will need to source phosphate to keep pace with battery production.

Scaling Factory Output

There’s no doubt that Tesla is growing, but that raises further questions. Many have asked if the company can keep pace with the growing demand for EVs. Musk’s tweet did cite the supply chain crisis. And while supply chain disruptions have certainly constrained the EV industry as a whole, productivity hasn’t been a problem for Tesla. The company’s Freemont, California plant outpaced all competitors in 2021.

As Reuters notes, “Tesla has weathered the global supply chain crisis better than other automakers, producing a record number of vehicles and revenue is expected to rise 52% in the fourth quarter to $16.4 billion.”

That doesn’t mean the company is out of the woods yet, but it does mean that investors have less cause for concern. Its size puts it in the best position when it comes to sourcing the materials it needs and its excess cash can assure it keeps expanding, scaling operations effectively.

Musk has plenty to address on the earnings call. While investors should certainly seek answers, they should not be concerned about the future of Tesla stock.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Article printed from InvestorPlace Media,

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