Jan 27, 2021 - Economy

What to watch for in Tesla's Q4 earnings report

Data: FactSet; Chart: Danielle Alberti/Axios
Data: FactSet; Chart: Danielle Alberti/Axios

Tesla will report Q4 2020 earnings after markets close today, with analysts expecting a sixth consecutive quarterly profit for the electric vehicle maker that was reeling just a few years ago.

Why it matters: Tesla is the country's dominant EV company, and its trajectory affects overall adoption of the tech, even as more and more models from other companies are hitting the market.

  • The company is also just a wild story, with its $837 billion(!) market cap that's larger than several legacy automakers combined, and the endless speculation about whether it's in a bubble.

What we're watching: Beyond the earnings numbers...

  • Deliveries: One question is how much growth Tesla expects after 2020's record of nearly 500,000 deliveries. "Experts in the industry we speak to believe that the company could realistically deliver upwards of 700-800K vehicles in the year," Nick Shields, analyst with the investment research firm Third Bridge, said in a note.
  • Product updates: "Wall Street is looking for more commentary on the Model Y, the newest addition to the Tesla lineup, and on upcoming models, such as the Cybertruck and a cheaper vehicle that has been only hinted at and that has been dubbed the 'Model 2,'” MarketWatch reports.
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