Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tesla CEO Elon Musk. Photo: Joshua Lott/Getty Images

Tesla will report its second quarter earnings after markets close late this afternoon, followed by co-founder and CEO Elon Musk's call with analysts.

Why it matters: There are lots of reasons to look closely at the company's health right now.

  • The growth in electric vehicle deployment in the U.S. still can't be untethered from the future of Tesla. Yes, the company has stumbled lately, but has done more than any other to make EVs cool.
  • Tesla is under an intense glare, thanks in part to Musk's vow that the company will be profitable during the second half of this year.
  • The company posted a $710 million loss last quarter, its worst ever, so the April–June financials are an important milestone.

The big picture: This is a high-stakes moment for the company, but expectations will be even higher in three months, thanks to Musk's forecast about turning a profit.

What we're watching today:

1. Earnings report: Of course, we'll check whether the losses are better or worse than forecasts. According to Zacks, revenues are expected to hit $3.79 billion with losses of $2.71 per share..

2. Model 3 status. Tesla achieved its goal of making 5,000 per week at the very end of last quarter.

  • Analysts will be looking for info on production since then and whether it's sustainable. In early July, the company said it planned to be producing 6,000 Model 3s per week by the end of August.
  • A related topic is how the company will roll out the long-promised $35,000 base model of the car. What's available now is far more expensive.

3. Expansion plans: The Wall Street Journal reported this week that officials in Germany and the Netherlands reached out to Tesla about building its first European factory there.

  • Analysts may also seek more information on plans announced July 10 for a Chinese factory.
  • Of note: More details on Tesla's China plans emerged Wednesday via Bloomberg.

4. Tone: Musk's behavior has been erratic in recent months, most notably accusing a British cave diver involved in the rescue of trapped boys in Thailand of being a "pedo guy." Musk later apologized.

What they're saying: Barclays' Brian Johnson, a veteran Tesla watcher, offered several more questions in a note Tuesday (albeit ones he's not terribly confident the company will answer today), including:

  • How many cars are in holding lots and how many of those have firm customer orders.
  • What does Tesla's board think of Musk's aggressive Twitter habits.
  • How Tesla is staffing the Model 3 ramp up and accounting for those personnel.
  • How Tesla will finance its European and Chinese factory plans.

Go deeper

Federal judge orders Trump administration to restore DACA

DACA recipients and their supporters rally outside the U.S. Supreme Court on June 18. Photo: Drew Angerer via Getty

A federal judge on Friday ordered the Trump administration to fully restore the Deferred Action for Childhood Arrivals program, giving undocumented immigrants who arrived in the U.S. as children a chance to petition for protection from deportation.

Why it matters: DACA was implemented under former President Obama, but President Trump has sought to undo the program since taking office. Friday’s ruling will require Department of Homeland Security officers to begin accepting applications starting Monday and guarantee that work permits are valid for two years.

Updated 56 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: Fauci says he accepted Biden's offer to be chief medical adviser "on the spot" — The recovery needs rocket fuel.
  2. Health: CDC: It's time for "universal face mask use" — Death rates rising across the country — Study: Increased testing can reduce transmission.
  3. Economy: U.S. economy adds 245,000 jobs in November as recovery slows — America's hidden depression: K-shaped recovery threatens Biden administration.
  4. Cities: Bay Area counties to enact stay-at-home order ahead of state mandate
  5. Vaccine: What vaccine trials still need to do.
  6. World: UN warns "2021 is literally going to be catastrophic"
  7. 🎧 Podcast: Former FDA chief Rob Califf on the vaccine approval process.
2 hours ago - Health

Bay Area counties to enact stay-at-home order ahead of state mandate

Golden Gate Park. Photo: Justin Sullivan via Getty

Counties around the San Francisco Bay Area will adopt California’s new regional stay-at-home order amid surges in cases and ICU hospitalizations, health officials said Friday.

The big picture: California Gov. Gavin Newsom announced a three-week stay-at-home order on Thursday that would go into effect in regions with less than 15% ICU capacity. Despite the Bay Area’s current 25.3% ICU capacity, health officials from Alameda, Contra Costa, Marin, Santa Clara, San Francisco and the city of Berkeley are moving ahead with a shelter-in-place mandate in the hopes of reducing risk.