Tesla (NASDAQ: TSLA) is scheduled to kick off the Big Tech earnings season on Tuesday after the market closes. The news may not be favorable, as the company has recently reported a decline in deliveries, rising inventories, and a series of global price cuts that have impacted margins. The world’s most valuable automaker is projected to experience its first revenue drop and lowest gross margin in nearly four years, raising concerns about its future strategy and its plans for the Model 2 and self-driving robotaxi.
Simultaneously, General Motors (NYSE: GM) is slated to report its first-quarter earnings before the bell, and analysts anticipate solid results driven by higher vehicle pricing. GM is expected to benefit from robust demand for its Chevrolet and GMC brand pickup trucks and SUVs, potentially leading to revised annual forecasts or guidance towards the higher end of previous targets. However, investors will be eager for updates on the company’s EV initiatives, the struggling Cruise robotaxi unit, and its stock buyback program.
Despite Tesla’s difficulties, the International Energy Agency (IEA) projects a robust 2024 for the global electric vehicle market. Electric car sales are anticipated to reach 17 million this year, up from 14 million in 2023, with China expected to account for a significant portion of these sales. The IEA highlights that despite concerns about tight margins and geopolitical uncertainties, global sales data suggests the industry’s growth momentum remains strong.
Meanwhile, crude prices have rebounded after recent losses, stabilizing amid ongoing tensions in the Middle East. The situation between Iran and Israel continues to be closely monitored, as it had previously contributed to oil price gains. However, expectations of tighter supplies in the coming months, production cuts by OPEC+ until June, and strikes on Russian fuel refineries have provided support to oil prices, countering recent downward pressure.
