Tesla is expected to report results for its first quarter after the bell on Tuesday, providing an update on its current and future outlook as investor confidence wanes. This comes amid slowing global demand for electric vehicles and pricing pressure from Chinese competitors.
The electric car maker’s stock price is down more than 40% year-to-date after disappointing fourth-quarter results, weak and unspecific delivery forecasts for the year and missed deliveries about 13%.
The company is expected to report adjusted earnings per share of $0.52 on revenue of $22.31 billion, according to Bloomberg consensus estimates. It would be the first drop in revenue in four years.
It is also expected to post an operating profit of $1.49 billion, down 40% from last year. In terms of non-GAAP metrics, Wall Street expects adjusted net income of $1.79 billion and EBITDA of $3.32 billion.
Investors will also be watching Tesla’s future product roadmap.
It comes as Tesla on Friday tried to boost demand for its electric vehicles by cutting prices on three of its five models in the United States. It then slashed prices around the world over the weekend, including in China, the Middle East, Africa and Europe.
It slashed U.S. prices for the Model Y, Tesla’s most popular model and best-selling electric vehicle, as well as the older and more expensive Models X and S.
These reductions reduced the starting price of a Model Y to $42,990 (£34,874), $72,990 for a Model S and $77,990 for a Model X. The US price of its support software to fully autonomous driving has also been reduced from $12,000 to $8,000. .