Tesla’s Earnings Are Impossible to Predict
@Jasonc13:
Tesla's Shanghai Gigafactory is the company's most productive factory.No one knows what to expect, or what investors will focus on, when Tesla TSLA +0.20% reports its quarterly earnings on Wednesday, but the key points to watch are clear: cash flow and demand.Lockdowns in China to fight Covid-19 constrained production at Tesla (ticker: TSLA), as well as for the entire Chinese auto industry, in the second quarter. The output lost at Tesla ’s Shanghai plant, which is the company’s most productive factory, makes it nearly impossible to accurately project the EV maker’s profits.All things considered, Tesla’ should probably earn less than Wall Street expects. Profit forecasts for the second quarter started out at about $2.30 a share. Now they are at about $1.85, down about 20%. Forecasts for ve