As Tesla (NASDAQ:TSLA) prepares to report its earnings, investors are closely watching several key aspects that will shape the electric automaker’s performance and prospects. Here are the top five factors to look out for in Tesla’s earnings report:

Deliveries Target 

Investors will be eager to learn how CEO Elon Musk plans to achieve the goal of delivering a record 476,000 vehicles in the fourth quarter, aiming to meet the annual target of 1.8 million units. Tesla has made recent price cuts to boost sales and expand its reach. These include price reductions for the Model 3 and Model Y in October, as well as the unveiling of a restyled Model 3 with an extended driving range for certain markets. Investors will seek insights into Tesla’s delivery plans for the new Model 3 in China, Europe, and the U.S.

Margins

Tesla’s margins are a crucial point of concern, especially given the price cuts it has implemented in the midst of heightened competition and rising interest rates. The price war, including discounts of over 6% in the third quarter, is expected to have affected Tesla’s margins. Analysts project that margins may have fallen to a four-year low of 18.1%, excluding regulatory credits. Concerns loom that margins could further decline, potentially dropping below 15%, particularly due to ongoing price reductions. Some analysts anticipate that a decline in lithium prices may partially offset these price cuts.

Cybertruck 

Tesla’s eagerly awaited Cybertruck launch event was postponed to the end of the year from its original date in September. The design complexities of the Cybertruck have contributed to the delay. Initial projections from 2019 indicated a price under $40,000 for the Cybertruck, but rising EV prices since then may lead to a higher price tag. Investors will be keen to learn more about the anticipated pricing and features of the Cybertruck.

Full-Self Driving 

Tesla’s full self-driving technology has been a key selling point for the company, with Elon Musk touting its potential to enhance Tesla’s value. However, the company has faced challenges in meeting its targets for full self-driving capabilities, as regulatory scrutiny and safety concerns persist. In August, Tesla reduced the price of its full-self-driving technology by 20%, and analysts suggest that further price cuts may be in the offing. Investors will be interested in any updates regarding the technology’s progress and pricing strategy.

Mexico Factory 

Tesla’s announcement of a factory in Mexico’s northern state of Nuevo Leon earlier this year raised anticipation. However, investors are awaiting details on potential capital outlay and the timeline for this facility. A senior Mexican government official indicated that the factory’s final permits could be issued in the coming weeks, and Tesla has requested infrastructure work in the region.

As Tesla navigates a competitive landscape and addresses various operational challenges, the details revealed in its earnings report will provide valuable insights into the company’s future trajectory.

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