Tesla Earnings: Will the Electric-Car Maker Report a Profit?
Electric-car company Tesla (NASDAQ: TSLA) has seen impressive growth in vehicle sales recently. Trailing-12-month deliveries are up 88%, fueled by surging production and deliveries of its lower-cost Model 3. But questions remain about how viable the company's business is as the automaker scales. While its losses have been narrowing and its free cash flow has turned positive, there's still uncertainty about whether this momentum can continue.
Questions linger: With Tesla's growth driven entirely by its lowest-priced vehicle, could the automaker's gross profit margin contract and weigh on profitability? Will spending on more production capacity and new vehicle development hurt free cash flow?
The company's third quarter will provide a timely window into whether or not Tesla's business is showing signs of scalability. When the automaker reports its third-quarter results on Oct. 23, here are two key areas investors will want to look at in order to assess Tesla's business.
Source Fool.com
