Tesla beat Wall Street’s profit expectations in its third-quarter earnings report. Shares rose 7% in after-hours trading immediately after earnings. Analysts are refocusing on Tesla’s core business and focusing on its profit margins in the coming quarters.
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Tesla is scheduled to report earnings after the closing bell on Wednesday.
Given the recent hype surrounding Tesla’s robotaxis, investors are likely to refocus attention on the company’s core car business.
Earlier this month, Elon Musk unveiled Tesla’s long-awaited driverless CyberCab at the “We, Robot” event. While the event generated considerable hype for Tesla, the driverless taxi program has also been met with skepticism over its feasibility and competition from rivals.
In the wake of the incident, Wall Street has shifted its focus back to the company’s core business, believing that the company still derives the majority of its revenue and profits from car sales.
Wall Street is keeping an eye on Tesla’s auto profit margins, which have suffered due to aggressive price cuts earlier this year.
The EV maker’s stock is also down about 12% this year, compared with a 22% rise in the S&P 500 index.
The earnings call begins at 5:30pm ET.
