Tesla Faces Profit Test After $540 Billion Rally
- AI frenzy, EV charging deals have driven the searing rally
- Second-quarter margins in focus after price cuts lifted sales
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Tesla Inc. investors have pushed its market value up by $550 billion this year, shrugging off shrinking profit margins as price cuts drive sales. Second-quarter results may force a rethink.
When the electric vehicle-maker reports earnings on Wednesday, Wall Street analysts are expecting its automotive gross margin to come in at around 20%, according to the average of estimates compiled by Bloomberg. That would be a drop from around 28% in the same period a year ago.