Tesla Inc. is slated to report fourth-quarter earnings after the bell Wednesday, and a known Tesla bull is calling the report "one of the most important in history," both for the EV maker and Chief Executive Elon Musk.
Tesla (TSLA) shares edged higher on Tuesday after a rally on Monday that took them to their highest close since Dec. 19.
"After experiencing unprecedented hyper growth over the past few years in the EV market which was essentially created by Musk, now Tesla faces a darker macro in 2023 with fierce competition coming from all angles," Wedbush analyst Dan Ives said in a note Tuesday.
FactSet consensus calls for Tesla to report fourth-quarter adjusted earnings of $1.13 on sales of $24.7 billion. That would compare with adjusted earnings of 85 cents on sales of $17.7 billion in the fourth quarter of 2021.
"Adding to that backdrop is Musk who has essentially gone from a superhero with a red cape to a villain in the eyes of many investors after the ongoing Twitter fiasco has cast a dark shadow over Tesla's stock," Ives said.
Musk is testifying in a federal trial around taking Tesla private tweets in 2018.
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