Tesla is about to report its 2nd-quarter earnings. Here's what to expect from Elon Musk's electric-car company. (TSLA)

elon musk

  • Tesla will report its second-quarter earnings after the closing bell Wednesday. 
  • Wall Street analysts expect Elon Musk’s company to lose about $0.31 per share on revenues of $6.45 billion. 
  • For months, analysts have worried demand for Tesla vehicles may be slowing. 
  • Musk is also likely to update investors on the company’s plan for a network of autonomous robo-taxis. 
  • Visit Business Insider’s homepage for more stories.

Tesla is set to report its earnings and financial performance for the second quarter of 2019 on Wednesday after the stock market’s closing bell.

The company previously reported vehicle deliveries for the three-month period in June, which set a new record.

On the monetary side of things, here’s what Wall Street analysts are expecting, according to a poll by Bloomberg:

  • Earnings (loss): –$0.309 per share
  • Revenue: $6.453 billion
  • Gross margin: 17.09%

Shares of Tesla have a had a rocky first half of the year, and are down more than 20% since January 1, despite peaking near $350 apiece in January. Still, earnings reports generally move Tesla’s stock considerably, with this quarter being no exception. Analysis by Bloomberg estimates a potential move of more than 7% in either direction following the release.

Bets against the stock, which has historically been one of the most shorted names in American markets, have fallen slightly, according to data from IHS Markit. There’s been a 1.5 million share reduction in borrowing since the beginning of the month as the stock has ripped higher, the financial data firm told Business Insider.

For those investors hoping to bet on poor results, there are still ample shares available for shorting. IHS says utilization, or the percentage of shares available for shorting, is only at about 73%, with 9 million shares still available.

There’s plenty of room for surprises

Wall Street’s thinking on Tesla has soured dramatically in recent months. The average price target for the stock is $265, according to a Bloomberg poll, down from as high as $350 at the beginning of the year.

Analysts have slapped downgrades and price target revisions on the name multiple times as a string of legal battles rattle investors.

Read more: Layoffs, SEC battles, and Elon Musk’s tweets: 2019 looks like another chaotic year for Tesla

What’s more, CEO Elon Musk appears to have changed course this spring, when he pitched investors on a network of a million, autonomous robo-taxis which he says can be in business by next year. On a conference call hosted by Goldman Sachs in May, CNBC reported, Musk told investors the move could help make Tesla into a $500 billion company — more than 10 times its current market value.

Then there’s the demand question.

For months, analysts have worried that underlying demand for Tesla vehicles may be drying up, and this quarter is no exception.

“We continue to believe that despite the impressive 2Q demand rebound, the ability to hit its aggressive FY19 unit guidance of 360k to 400k will be a Herculean task,” Daniel Ives, an analyst at Wedbush Securities, told clients ahead of the earnings report. He has a neutral rating and $230 price target for the stock.

“With the company already reporting stronger delivery units for 2Q, all eyes heading into the print/conference call will be around the margin profile in the quarter and most importantly Tesla’s profitability outlook for the next few quarters,” he continued.

More Tesla news:

  • Elon Musk’s Tesla earnings could go from $0 to $2.3 billion, and this jump shows how complicated CEO compensation has become
  • Tesla bailed on its harassment lawsuit against a short seller after refusing to provide evidence of its claims
  • Tesla could open its Shanghai Gigafactory even sooner than expected, according to a team of Wall Street analysts who just got back from China

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