Apr 29, 2020 - Economy

Tesla's first-quarter earnings to provide glimpse at coronavirus impact on its business

Data: Yahoo; Chart: Axios Visuals

Tesla, which dominates electric vehicle sales in the U.S. and has a growing global reach, will report its first-quarter earnings after markets close today.

The big picture: Bloomberg's preview of CEO Elon Musk's quarterly call tonight points out that Tesla's share price has been resilient despite production shutdowns from the coronavirus pandemic.

  • However, they also caution: "He’ll probably have to assure the market that his lone U.S. vehicle-assembly plant in California can resume production relatively soon and that customers who are quarantining now will be chomping at the bit to buy Model Y crossovers and Model 3 sedans once they re-emerge."

But, but, but: As Business Insider points out, the biggest coronavirus disruptions began well into Q1, so "the impact of those difficulties won't show up until the company adds up the second-quarter numbers."

  • "More pressing is how Tesla plans to ride out the remainder of Q2 and stay afloat through a gradual restart of the US economy in the second half of the year," they report.

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