TSLA Stock: 7 Things Tesla Investors Need to Watch for in Q2 Earnings

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Investors in Tesla (NASDAQ:TSLA) have seen some of the most prolific returns this past decade has had to offer. Indeed, the rising prevalence of electric vehicles and Tesla’s early-mover advantage in this sector is something to behold.

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Of course, each quarterly earnings report is a big deal to Tesla aficionados. Investors can see how much progress the company has made in its goal to bring electric vehicles to the world. Indeed, many could argue that Tesla has forced the auto industry to completely shift its focus in only a decade. Accordingly, perhaps Tesla has already achieved its goal.

That said, from an earnings perspective, there’s a lot that investors will be keeping their eye on this quarter. Let’s dive into a few of the key factors for investors to watch prior to Tesla’s upcoming earnings release on July 26.

Upcoming Earnings Set to Be a Big Event for TSLA Stock

  • Coming into earnings, Tesla has shown strong demand for its vehicles. Indeed, according to reports, registrations in California rose 85% in Q2 to 23,556.
  • Accordingly, investors will be paying close attention to the production and deliveries numbers. How these are broken out will matter as well.
  • For example, Model Y registrations were reportedly up more than 700% this past quarter. Investors will want to see if production and delivery numbers align with projections.
  • On the earnings side, investors will be assessing the underlying earnings quality of Tesla.
  • Indeed, this past quarter saw the majority of Tesla’s earnings arise from selling tax credits and the company’s Bitcoin (CCC:BTC-USD) exposure.
  • With Bitcoin’s recent decline, investors will look to see how this has hurt the company’s bottom line.
  • Additionally, Stellantis (NYSE:STLA) has recently announced it will not need to purchase any more EV tax credits from Tesla. These drivers are likely to be reflected in earnings.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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