uploads/2019/01/electric-car-513627_1280-2.jpg

Could Elon Musk’s Magic Work on Tesla Investors Today?

By

Updated

Tesla

Today, popular American electric carmaker Tesla (TSLA) is set to release its fourth-quarter earnings after the market closes. As of yesterday, its stock had fallen 10.6% this month, whereas the S&P 500 (SPY) and NASDAQ Composite (QQQ) had risen 5.3% and 5.9%, respectively. Meanwhile, automakers General Motors (GM), Ford Motor (F), Fiat Chrysler Automobiles (FCAU), Ferrari (RACE), and NIO (NIO) had risen 15.0%, 14.5%, 15.4%, 11.2%, and 8.9%, respectively.

Article continues below advertisement

Can Elon Musk work his magic?

On January 18, Tesla CEO Elon Musk announced a 7% cut in the company’s full-time workforce. In his email to employees, he acknowledged the company’s recent challenges and described necessary steps for the company’s survival and growth. Tesla stock tanked by 13.0% that day and continued to fall in the next couple of sessions.

Therefore, Musk’s ability to paint an optimistic picture of Tesla’s plans for investors could be helpful today. Musk has already revealed that he expects Tesla to report a profit in the fourth quarter, though that profit will be lower sequentially. Analysts expect the company’s adjusted EPS to fall sequentially to $2.20 from $2.90.

Advertisement

More From Market Realist