Tesla’s (TSLA) stock experienced a notable increase last Friday, breaking an eight-week losing streak as the company prepares to announce its earnings on April 22. This positive shift comes amidst reports of Tesla seeking to recruit chip engineers in Taiwan, home to the prominent chipmaker TSMC.
The company’s stock surged earlier this week, buoyed by anticipation around semiconductor developments. CEO Elon Musk indicated that Tesla has reached a significant milestone in the design of its new AI5 chip, intended for future electric vehicles, extensive training clusters, and the Optimus robot.
In an ambitious move, Tesla plans to establish its own chip manufacturing facility, known as Terafab, though this initiative poses substantial engineering challenges. The company’s endeavours in chip production coincide with its upcoming earnings report, expected to provide insights into its financial health.
Analysts predict that Tesla will report revenues of approximately $22.08 billion, reflecting a 9% decrease from the previous year, with an adjusted earnings per share (EPS) of $0.35. The adjusted EBITDA is projected to decline to $3.217 billion, down 14.4% from the same period last year. Recently, Tesla announced it delivered 358,023 vehicles globally in the first quarter, slightly below the expected 364,645 yet marking a 6.3% year-over-year increase.
However, it’s worth noting that last year’s first-quarter deliveries were particularly low due to the transition to the new Model Y.
The company is also anticipated to provide updates on its Full Self-Driving (FSD) capabilities and robotaxi initiatives, which are critical areas for growth. Morgan Stanley forecasts that Tesla is nearing a significant milestone of 10 billion miles driven with FSD, which could lead to further advancements thanks to the data amassed.
Despite slow progress in expanding its robotaxi service, which currently operates in Austin, Texas, and the San Francisco Bay Area, further plans for city rollouts are expected during the earnings call. Each of these developments signals Tesla’s ongoing commitment to enhancing its technology and market presence.
As the earnings report approaches, investors and stakeholders will be closely monitoring these updates, which may significantly impact Tesla’s stock performance.
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