Tesla Q1 earnings: Wall Street's expectations after 2024 woes

Many eyes on Wall Street look towards Tesla (TSLA) as the EV maker gears up to report its first-quarter earnings for 2024. The EV maker has had a bumpy start to the year as its faced fierce competition in China and the US causing price cuts on its vehicles, with shares of the company sliding to a 15-month low.

Yahoo Finance Senior Reporter Ines Ferré joins The Morning Brief to break down everything Tesla has faced recently as well as what investors should expect before it reports after Tuesday's market close.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Nicholas Jacobino

Video transcript

SEANA SMITH: Tesla will be reporting its first quarter results and the EV maker's stock sliding to a 15-month low. The street not so optimistic on the company right now. Only about 34% of analysts have a buy rating on the stock. That's down from over 51% this time last year.

Now, just around 43% of analysts have a hold rating and about 22% have a sell rating. So here to break it all down what Wall Street is expecting in terms of both earnings and guidance, our very own Ines Ferre has those details for us, Ines.

INES FERRE: Yeah, Seana. And Tesla's results come at a critical time when the stock is down about 50% from its peak last year. Analysts expect decreased revenue and quarterly profits compared to last year. For the quarter, Tesla is expected to report adjusted earnings per share of about $0.52 almost a 40% drop from a year ago in terms of revenue.

The street expects $22.31 billion. That would be the first top line drop in four years. A lot is riding on this quarterly print and the roadmap for what's ahead. Keep in mind this past quarter, Tesla's global deliveries came in less than expected. Waning demand, fierce competition out of China has forced the company to cut prices, the latest price cuts came just this week. And investors will be watching for what's ahead.

The unveiling of the robotaxi announced by Elon Musk recently, a vehicle that's generally understood to have no steering wheel or pedals. Wall Street still has questions, though, about whether Tesla has given up on a mass market sub $30,000 vehicle. These questions come shortly after the company cut staff while shareholders will be asked to reinstate Elon Musk's pay package at its June meeting.

For investors, this quarterly report is more than just a financial update. The way the company deals with its challenges may impact investor confidence. And as Dan Ives of Wedbush recently put it, this quarterly print and commentary from Elon Musk afterwards will be a white-knuckle moment, guys.