Proactive Investors - Tesla Inc (NASDAQ:TSLA) is expected to post declining earnings when it reports its fourth-quarter results on January 24, and CEO Elon Musk just gave investors one more thing to worry about.
The electric carmaker is projected to post earnings of $0.74 per share, down about 38% year-over-year, on revenue of $25.51 billion, up nearly 7% over the same span.
Earlier this month, Tesla said its fourth quarter 2023 EV deliveries totaled 484,500, edging past company expectations of 480,500.
Investors will also be watching for the impact of Cybertruck, which recently saw its first deliveries to customers, as well as potential updates on the company’s Full Self-Driving technology.
Meanwhile, Musk has shaken expectations in the long term, threatening to develop artificial intelligence technology outside of Tesla if his compensation isn’t increased.
Responding to a post on X discussing the issue, Musk said he was “uncomfortable growing Tesla to be a leader in AI and robotics without having [around] 25% voting control.”
I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned.Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand…
— Elon Musk (@elonmusk) January 15, 2024
Analysts at Wedbush, however, are unfazed, calling Musk’s comments, “just more drama in the Tesla story,” with the expectation that he and the board will ultimately agree on a new compensation structure.
That said, “[i]f Musk ultimately went down the path to create his own company for his next generation AI projects this would clearly be a big negative for the Tesla story,” the analysts acknowledged.
Wedbush held its Outperform rating and $350 price target. Tesla shares dipped 3.3% Wednesday afternoon to $212.68.