© Kim Hong-Ji / Reuters
Elon Musk always keeps things interesting.
The eccentric billionaire is a big visionary who accomplished a great deal in the last couple decades. After creating quite a windfall for himself with PayPal, he turned the automobile industry on end by pushing everyone towards eletric vehicles. At the same time, Tesla is one of the leading companies in autonomous vehicle technology although no company reached level 5 up to this point.
Of late, Musk's behavior is a cause of concern. Many are starting to question his leadership abilities along with his sanity. This, at a time, when Tesla is losing money hand-over-fist and requires money from Wall Street in billion dollar chunks.
Tesla will announce their second quarter numbers after the bell on Wednesday. The last earning call saw Musk cut off questions from analysts and head over to YouTube for questions.
This is a big quarter for Tesla since analysts will be looking for signs of movement towards profitability, something Musk promised in the second half of this year.
Last week, Tesla stock dropped to a two month low after it was reported that Tesla asked for refunds from suppliers in an effort to turn a profit.
Working in the company's favor is the fact that it did meet the 5,000 per week production of the Model 3, albeit 6 months after Musk promised. Many are now looking to see if it is a number that can be sustained. Musk claims the company will be at 6,000 by the end of August.
This quarter will see another huge loss for Tesla. It is no without precedent considering Amazon went the better part of a decade losing money. Musk erratic behavior might well be wearing thin on Wall Street. Investors are willing to keep funding a long-term project they believe in if there is something that gives them confidence. Nothing shakes big money Wall Street players like erratic behavior.
Analysts are expecting $3.89 billion in revenues for the quarter with a loss of $2.88 per share.
In addition to the numbers, there are a few of other things people will be watching.
Musk's behavior certainly will be on center stage. After the last call, he would be wise to toe the company line and behave. While an apology is most likely out of the question with Musk, some form of atonement with the analysts could go a long way.
The number of Model 3 reservations are something that received press of late. Some are claiming that interest in the car is waning. Others feel that it is still strong and nothing to worry about. It will be interesting to see what numbers the company puts out regarding that.
Will we hear an update about the Model 3 production line? After the frenzied pace towards the end of last quarter, along with the media coverage, things were quiet in July.
With Tesla, though, it is always best to expect the unexpected.