Tesla is expected to report record earnings after the bell Wednesday, but it might not be enough to satisfy anxious investors.            The c

Next up for Elon Musk: Crucial Tesla earnings and outlook

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2023-01-25 15:00:06

Tesla is expected to report record earnings after the bell Wednesday, but it might not be enough to satisfy anxious investors.

The company is facing growing doubts about its business after disappointing sales and a series of price cuts for its cars around the world.

“I don’t think Q4 matters other than what it means for Q1,” said analyst Gordon Johnson, one of Tesla’s harsher critics. “What’s going to be consequential is the guidance.”

Analysts surveyed by Refinitiv forecast that fourth quarter earnings and full-year earnings will both be higher than a year ago, and likely to reach records for the company. That’s good news after two quarters in which Tesla profits fell short of earlier high marks.

But on January 2, the company revealed disappointing fourth quarter sales, despite price cuts announced in December. Subsequent additional price cuts in January have raised concerns that the company is facing softening demand for its products. US buyers are now paying $44,000 for the basic version of the Model 3, $3,000 less than they were paying in late November.

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