Tesla, Inc. TSLA is scheduled to host its second-quarter earnings call Wednesday at 5:30 p.m. EDT.
As D-day nears, analysts have shared expectations concerning the core numbers and the focal points on the earnings call.
What Happened: Tesla management may not discuss the launch timing of the Model 3 refresh on the earnings call, said Future Fund Managing Partner Gary Black.
The deduction, according to the analyst, could be due to the "Osborne effect." This is a social phenomenon referring to customers canceling or deferring orders for the current version of the product, which could soon go obsolete, due to the company prematurely announcing a future product. In other words, it is cannibalization.
Rumors of the Elon Musk-led company refreshing its most-selling sedan began doing the rounds in 2022. The project was reportedly codenamed "Highland."
Subsequently, camouflaged prototypes of the upgraded Model 3 were spotted by multiple Tesla influencers and fans, who shared them on Twitter. Since the camouflage hid the taillights and headlights, reports suggested these were different from what is present in the original Model 3 vehicle.
Bloomberg reported in mid-May that Tesla was close to starting trial production of the revamped Model 3 sedan at its Giga Shanghai. The upgraded vehicle will likely have a steering wheel design similar to the Tesla Semi and Model S without a traditional stalk, the report said, citing online rumors. This lends credence to speculation that the Model 3 could be shifting to on-screen controls for toggling between park, drive and reverse.
See Also: Everything You Need To Know About Tesla Stock
Q2 Expectation: Black expects Tesla to report second-quarter adjusted earnings of $0.82 per share and auto gross margin, excluding regulatory credits, of 18.2%.
The fund manager expects investors to focus on whether the second quarter will mark a trough for gross margins. The guidance for 2023 volume and auto gross margin, excluding regulatory credit, will also be of interest to investors, he said. Estimates for these two metrics are 1.85 million and 19.2%, respectively.
The Cybertruck delivery timeframe and the timing for full-driving software Level 4 autonomy may also evince interest, he added.
Price Action: Tesla ended Friday's session up 1.25% at $281.38, according to Benzinga Pro data.
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