What to expect from Tesla's earnings report
Tesla reports its first-quarter financials after markets close late Monday afternoon.
Why it matters: Tesla leads the world in electric vehicle sales and dominates the U.S. market, but has only recently become consistently profitable.
What's next: Look for a seventh consecutive profit — Investor's Business Daily reports it's expected to be "huge" — on the strength of the company's record 184,800 deliveries in the first quarter.
The big picture: Tesla is facing headwinds and tailwinds going forward.
- President Biden is pushing Congress to expand EV purchase incentives, which would help Tesla and GM. They have both reached the 200,000 per-manufacturer cap for the $7,500 consumer credits.
- But Tesla also faces increasing competition as both long-established automakers and startups are bringing a whole bunch of new models to market.
- And the Wall Street Journal notes Tesla faces "questions about the safety of its battery-powered vehicles following a recent crash in Texas and a protest in China."