Tesla Set to Report Q4 Results Late Wednesday

After 2023's price cuts and tougher competition, Tesla is set to report late Wednesday. Lower demand and a big, one-time jump in used EVs could drive a very different 2024.

Investors appear to be hunkering in for a low-spark start to electric vehicle (EV) earnings season this week, and not just because frigid temperatures left many EV owners shivering next to slow chargers.

With Tesla's (TSLA) results expected Wednesday, many might ask if the recent slowdown in EV sales—and now a major, one-time influx of used cars into the U.S. market—could have global implications. Though with TSLA, the spotlight increasingly tends to linger on the expanding business lines and behavior of its CEO Elon Musk.

A host of headlines this month alone could add context to the numbers that U.S. EV makers report in their final quarter:

  • Before today's open, Tesla's stock price was down nearly 16% for 2024, following price cuts throughout China and Europe on its Model Y and Model 3 vehicles. Analysts forecast TSLA's Q4 earnings per share (EPS) to be down nearly 38% from the year-ago quarter, with revenues up nearly 5%. In 2023, the company's stock finished up nearly 102%.
  • Chinese automaker BYD—which still counts Berkshire Hathaway's (BRK.B) Warren Buffett as an investor despite the Omaha billionaire's recent trims to that stake—became the world's biggest EV manufacturer last year. That growth drew fire as Reuters reported January 12 that the European Commission (EU) is investigating BYD and other Chinese EV makers for unfair advantage in European markets related to government price subsidies.