This week has been bumpy for investors in electric vehicle (EV) maker Tesla (NASDAQ:TSLA). TSLA stock is down slightly on the week. However, shares are making a move into the green today, up by under 1%.
Today, volatility tied to the high-profile departure of Tesla’s autopilot division head has been overshadowed by interest in upcoming earnings. The company’s second-quarter report will be released on July 20. While many experts suggest the results will be tough to swallow, investors appear to be “taking the over” on bets that Tesla can exceed the lowered expectations.
How Tesla performed over the past quarter will be scrutinized very closely. However, investors will also likely focus on any forward-looking statements the company makes in regard to future demand and operational issues out of Shanghai and Texas.
Let’s dive into what TSLA stock investors will want to watch for in the earnings report.
What to Watch With TSLA Stock Next Week
This could be one of Tesla’s most important earnings reports. For one, supply-chain disruptions and surging inflation could negatively impact margins. That’s something we haven’t seen in some time, with Tesla managing to post impressive margins in quarters past. Accordingly, there’s plenty to digest from a backwards-looking basis.
However, as mentioned, the market is forward-looking. That means how the company outlines its risks tied to global production moving forward will be especially important. With crypto prices plummeting, how the company accounts for its Bitcoin (BTC-USD) losses will be interesting as well.
Finally, demand forecasts will be an important factor for TSLA stock investors to consider. Given impending recession concerns, how many consumers are able to afford luxury vehicles like Tesla remains to be seen.
All in all, it’s shaping up to be a difficult quarter for Tesla to beat expectations.
On the date of publication, Chris MacDonald did not hold (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 InvestorPlace.com Publishing Guidelines.
