5 Things for Tesla Investors to Watch With Earnings on the Horizon
There's a lot to look forward to in the land of Tesla, but here's the trillion dollar question.
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Tesla is scheduled to report earnings next week. When it does, investors will be curious to hear new information about:
- The latest Full Self-Driving (FSD) update, version 14.3, which is already rolling out to early testers and employees.
- The status of the new Roadster. CEO Elon Musk previously said Roadster would premiere in April, with some analysts looking to May.
- The third generation of the Optimus humanoid robot. Musk believes Optimus is Tesla’s most important product, and could eventually dwarf the EV maker’s auto sales.
- Cybercab, a fully autonomous robotaxi that has no steering wheel or pedals. Limited production has begun, and is expected to ramp up later this year.
- Terafab, a joint venture of SpaceX, Tesla, and xAI and Intel. The goal of Terafab is to produce one Terawatt, or one trillion watts, of AI compute capacity per year.
With the exception of FSD, none of these products have added to Tesla’s revenue.
That's actually good news. There's a lot to look forward to in the land of Tesla.
In the meantime, like many large-cap tech names, the stock has been under pressure. Tesla currently trades below its key 50-day (blue) and 200-day (red) moving averages.
Tesla caught a bounce from support at $343 (black dotted line). Last week, we indicated that a bounce from that level was likely.
Still Number One
Tesla remains by far the top EV seller in the U.S. According to Cox Automotive, Tesla sold more U.S. vehicles in the first quarter than all its competitors combined, capturing a 54.2% market share.
The SpaceX Effect
Ironically, Tesla shares could see additional pressure due to the SpaceX initial public offering, which should occur this summer. Other large-cap names could also see pressure, as money managers reallocate funds for one of the most anticipated IPOs of 2026.
SpaceX is expected to have a market capitalization of over $1 trillion, making it the first U.S. stock to achieve that feat on its first day of trading. Internationally, Saudi Aramco’s market cap exceeded $1 trillion on its first day of trading in 2019.
The Trillion Dollar Question
How is it possible that SpaceX could have a greater market capitalization than Tesla on day one? It’s because SpaceX dominates its competition in the wide-open field of space travel.
Tesla could dominate the humanoid robot market in a similar fashion. There is no entrenched competition that currently dominates that field.
When Elon Musk envisioned Tesla reaching a market cap of $10 trillion, the main driver wasn’t expected to be EV sales. The automotive field is crowded, but robotics, like rocketry, is wide open.
Bottom Line
The rise of smartphones meant fewer purchases of cameras, camcorders, iPods, and other devices. Entire categories of goods were affected.
Optimus could have a similar disruptive effect. Musk believes it could become the most popular product in history. Tesla is scheduled to report earnings after the close on April 22.
Related: Is Tesla’s Valuation Ludicrous? Or Is the Company About to Go Plaid?
At the time of publication, Ponsi was long TSLA.
