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What to anticipate in Tesla’s Q4 earnings call

Yahoo Finance Live anchors Dave Briggs and Seana Smith highlight what investors should expect in Tesla's fourth-quarter earnings call.

Video Transcript

DAVE BRIGGS: We're about 24 hours from Tesla's highly anticipated fourth quarter earnings release. Wedbush Securities' Dan Ives calling tomorrow's release and subsequent earnings call, quote, "one of the most important moments in the history of Tesla and Musk himself." Now, we say that with the caveat.

We love Dan. Little prone to hyperbole at times. But it certainly is important for Tesla with their recent vehicle price cuts and year-end delivery numbers likely already priced into the stock. Investors will be focused on how Tesla stacks up against expectations. The Street looking for adjusted earnings per share of $1.12 with revenue of $24.1 billion. We'd love to hear more about margins. But we're certainly not in terms of those price cuts. That's really a Q1, maybe even Q2 story down the road. But maybe we hear from Mr. Musk on it.

SEANA SMITH: Yeah, you got to think that an analyst or two are going to ask about that, the impact that it could potentially have on their business when you talk about some of that margin pressure from the price cuts. It also is going to be likely one of the first times CEO Elon Musk faced questions publicly since he abruptly left a Twitter spaces with journalists in mid-December, just last month.

Morgan Stanley's Adam Jonas saying in a note to clients today that he expects management to be upbeat about the positive reaction following Tesla's recent price cuts. But Jonas adds that, quote, "Investors must have confidence that fiscal year earnings have bottomed before seriously revisiting the stock, that process for investors should extend beyond Tesla's March 1st investor day." This is all according to Jonas.

So, again, a number of things will be unpacked in this earnings report. A lot of it will have to do with the demand side of it. Some of that, obviously, will likely be maybe helped here with those price cuts. I think it's safe to say that management will likely be hyping up the demand that they have just seen in the last week or so after that.

But I think stepping back, talking about the tough backdrop that Tesla is up against right now, obviously, waiting demand could have been one of the huge reasons for those price cuts but also that stiffer competition out there. And we saw a number of other EV makers, a number of the traditional automakers that are in the EV space. Their stocks under pressure following Tesla's price cut because the thought there is that they might then have to lower prices and put more pressure on their margins as well. So, again, I think just a broad takeaway in terms of how strong or how weak this sector is right now and any trends that they could pull out, I think, will certainly be a highlight in tomorrow's report.

DAVE BRIGGS: Really just want to hear about demand into this--


DAVE BRIGGS: --weakening economy. I'd love to ask him, if you had a chance, how much time he is spending at Twitter versus Tesla. It's interesting because he has not been at SpaceX. And we've seen, well, the stock, literally, the valuation, a rocket ship. We'd like to hear about the Tesla Semi. We'd like to hear about the Tesla Cybertruck.

We expect him to be on the call. In the last call he was on, end of Q3, he said, looks like we'll have an epic end of year. I don't know how you define epic. But I think he was spot on about that in terms of the magnitude of the developments for Tesla because they started with the price cuts in China, which were received very poorly.

And then once they were really absorbed, they performed very well. Same thing here. We heard analysts very critical of those price cuts. But then it's pop demand at North American stores. And so it looks like a win-win there for him. It's going to be a very interesting report, very fascinating call. One question for him?

SEANA SMITH: Well, I was going to say, we also haven't even mentioned the Cybertruck that might come up just--

DAVE BRIGGS: We missed that.

SEANA SMITH: --in terms of the plans for there-- the semi truck, the additional plans that they have made. Did he mention the Cybertruck?

DAVE BRIGGS: I mentioned the Cybertruck.


DAVE BRIGGS: And the--

SEANA SMITH: You know, you're talking so much. It's hard--

DAVE BRIGGS: And the Semi. I know. I'm talking too quickly. I apologize.

SEANA SMITH: Well, I was going to say, there's just so much to dig into when--

DAVE BRIGGS: Yeah, yeah.

SEANA SMITH: --it comes to this report in--

DAVE BRIGGS: No question.

SEANA SMITH: --terms of the headlines that we could get out a lot of it. Also has to do with some of those factories too, some of their new plants that they have made in Nevada, Mexico, Indonesia. Any color there, I think, will certainly be something that investors will want to know. And we will have full coverage of Tesla's report minutes after the release right here on Yahoo Finance. I'd be sure to tune in to our live special here with Brad Smith, Brian Sozzi after the earnings call tomorrow evening. You're not going to want to miss that.