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Tesla (TSLA) is set to report fourth quarter results on Wednesday, the first report since President Donald Trump returned to the White House with Tesla CEO Elon Musk by his side.
Guggenheim Securities automotive equity research director Ron Jewsikow joins Market Domination with Julie Hyman and Josh Lipton to outline his bearish outlook for the electric vehicle (EV) pioneer's earnings results.
Jewsikow says he expects Tesla to fall short of Wall Street expectations on auto gross margins, excluding regulatory credits: "Tesla was quite promotional in the fourth quarter to try and hit their volume growth targets for the year, and as a result, the revenue per vehicle essentially is going to be quite a bit weaker than the Street is forecasting."
Despite the jump in Tesla's stock price driven by Trump's 2024 election win, the analyst, who holds a Sell rating on Tesla, says the company likely still faces regulatory hurdles:
"We would push back that the vast majority of the bottlenecks on Tesla's kind of pathway to robotaxis and self-driving vehicles is going to come in the form of state and local regulators that have the ability really to control what goes on the road in their jurisdictions, as well as just technological progress."
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Watch the video above to learn more about Jewsikow's expectations of Tesla's energy storage business and Musk's proposed role in the Trump administration.
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This post was written by Naomi Buchanan.