Tesla earnings to release Wednesday - what to know

The largest EV producer in the world Tesla is expected to release its pivotal earnings report on Wednesday, potentially altering the path of markets for the remainder of the week as a key precedent for other tech stocks.

Tesla store, Reuters.

The Elon Musk-led megacorporation will announce its earnings report for the second fiscal quarter in the after hours of Wednesday, meaning that the fallout of the report will take place starting Thursday.

Previously, earnings reports had either very positive or detrimental effects on the price of Tesla shares. For instance, its fatal earnings report at the same time last year sunk the stock by over double-digits, leaving it far below highs for more than half a year.

According to Yahoo Finance, "The company is expected to report second quarter revenue of $22.79 billion, per Bloomberg estimates, a 9% drop compared with the $25.05 billion reported a year ago. From a profitability standpoint, Wall Street analysts are expecting adjusted EPS of $0.43, translating to adjusted net income of $1.513 billion, down slightly from a year ago."

The company has many things going for it and serving as a net negative for it, which will e discussed here.

Elon Musk, the CEO of Tesla, shares a very controversial relationship with the current president Donald Trump. Previously an ardent Trump ally and leader of the Department of Government Efficiency temporary service, he later broke his alliance with the president after Trump put forth the "Big, Beautiful Bill" which would undo many of Musk's efforts to reduce the deficit. Then, Musk called for Trump's impeachment, the release of the Epstein files, and the creation of the America Party, all of which Trump denied.

Also, Tesla suffered earnings losses in the past, especially in European markets where competitors such as XPeng, Rivian, and General Motors picked off from its massive market share over the EV industry. This has led to double-digit registration losses, as well as deep stock price declines.

However, the key thing providing a glimmer of hope for Tesla is its Robotaxi campaign, which has already expanded to many urban areas across the United States. Investors very explicitly were fond about it, leading to the stock's massive rise in June and early July. If the campaign proves successful, then it should be made clear in the earnings report.