Tesla Earnings Report Could Add to Concerns About Its Strategy
Summary
Investors are hoping that Elon Musk, Tesla’s chief executive, will answer questions about the company’s strategy when he holds a conference call Tuesday. Tesla is expected to report on Tuesday that it made less money in the first three months of the year because of its tepid car sales, reinforcing concern among investors that the company led by Elon Musk is losing ground in the market for electric vehicles. Mr. Musk has signaled recently that Tesla will focus on autonomous driving technology and a vehicle he calls the Robotaxi, dismaying investors who had expected the company to develop a new, lower-priced model that could make electric cars affordable to a broader range of customers and people in more countries. “Everything else is like variations on a horse carriage.” Focus on the earnings report Tuesday was unusually intense after a series of recent events that raised questions about Tesla’s direction and Mr. Musk’s leadership. Last week Tesla’s board of directors disappointed investors who hoped it would do more to get Mr. Musk to focus on the car business and spend less time on X, where his polarizing comments and affinity for right-wing conspiracy theories have alienated many potential customers.