Tesla Motors (TSLA.US) shares rose 3% on Friday, bringing the weekly gain to 14.8% and concluding an eight-week consecutive decline. The company is scheduled to release its financial results on April 22, Eastern Time, which will test the sustainability of the recent upward trend.
Multiple positive factors contributed to Tesla's rebound this week. Easing tensions in the Middle East improved market sentiment, while the broader technology sector showed strength. Additionally, Tesla has released encouraging updates regarding its in-house AI chip development.
Tesla CEO Elon Musk announced on Wednesday that the company's AI chip design team has successfully completed the tape-out for the AI5 chip. This marks a critical milestone as the chip progresses toward manufacturing. The AI5 chip is intended for use in future electric vehicles, large-scale training clusters, and the Optimus robot.
Alongside the AI5 chip news, Tesla revealed ambitious plans to manufacture chips independently at its proposed Terafab factory. Analysts and industry experts noted that establishing its own wafer fabrication plant is highly challenging and likely to encounter significant engineering hurdles.
As the stock rallies on these positive developments, Tesla is set to report first-quarter earnings after the market closes next Wednesday. Analysts project revenue of approximately $22.08 billion, down 9% year-over-year, with adjusted earnings per share of $0.35. Adjusted EBITDA is expected to decline 14.4% to $3.217 billion.
Earlier this month, Tesla reported global deliveries of 358,023 vehicles for the first quarter, a 6.3% increase from the prior year but below the market consensus of 364,645. It is worth noting that last year's first-quarter deliveries were relatively low due to the Model Y refresh, making the year-over-year comparison less indicative.
The market also anticipates updates on Tesla's Full Self-Driving (FSD) and autonomous taxi services, which could significantly boost investor confidence. Morgan Stanley predicts that Tesla's FSD mileage is nearing 10 billion miles, a major milestone for the company. The accumulation of vast data is expected to drive further technological breakthroughs.
Currently, Tesla's autonomous taxi service remains in its early stages, operating only in Austin, Texas, and the San Francisco Bay Area, with most vehicles still equipped with safety drivers and progress being slow. The market expects the company to announce expansion plans to additional cities.