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Elon Musk announces a Tesla project in Australia in September 2017.
- $4 will report third-quarter earnings Wednesday afternoon.
- Musk has previously said the company could be cash flow positive this quarter.
- All eyes will be on the Model 3's average selling price, a major component of the company's profitability.
$4 is scheduled to report its third quarter earnings after the closing bell Wednesday, $4
Here's what Wall Street analysts are expecting:
- Adjusted earnings: -$0.15 per share
- Revenue: $6.315 billion
All eyes will be on the EPS line when the numbers are released. $4
With its all-hands-on-deck rush>$4 to finish the quarter strong and "abnormally high" Model 3 pricing could drive a temporary profit, >$4one bearish analyst told clients ahead of the earnings report.
"If they aren't profitable, it's a problem," UBS analyst Colin Langan said in a note. "If Tesla is unable to report a profit in Q3 & Q4 with ASPs (average selling prices) ~$60k, we struggle to understand how they will be profitable when ASPs normalize at ~$45k."
Langan's price target for Tesla is $190, much lower than Wall Street's average price target of $301 - roughly in line with the stock's price Wednesday afternoon.
$4 had sank from previous highs on Wednesday, and were trading up about 0.4% Wednesday afternoon. Options pricing was implying a move of 7% in either direction following the earnings report, according to data from Bloomberg.
Short sellers, or those investors betting against Tesla's stock price, $4
Check back after markets close for Tesla's full earnings report.