WALL STREET IS LOOKING TO TESLA'S EARNINGS FOR CLUES TO MUSK'S PLAN TO RESTORE COMPANY'S WILD GROWTH

But Wall Street was unimpressed and will be looking for other answers from CEO Elon Musk when Tesla releases a report on its first-quarter finances after the U.S. stock market’s closing bell Tuesday.

Many industry analysts say a nearly 9% sales decline in the opening three months of 2024 raises questions about demand for Teslas and other electric vehicles.

For Musk, the answer appears to be the long-elusive robotaxi, which he has been touting as a growth catalyst for Tesla since the hardware for it went on sale late in 2015. Musk has called the system “Full Self Driving,” even though the company says on its website that it can’t drive itself and humans must be ready to take control at all times.

In 2019, Musk promised a fleet of autonomous robotaxis by 2020 that would bring income to Tesla owners and make their car values appreciate. Instead, they’ve declined with price cuts, as the autonomous robotaxis have been delayed year after year while being tested by owners as the company gathers road data for its computers.

Now, Musk appears to be betting that the unveiling of a new robotaxi model on Aug. 8 will be the catalyst that his company needs to return to wild annual sales growth.

Industry analysts are skeptical, and fear that Musk has canceled or delayed plans for the Model 2, a new small Tesla for the mass market that would cost around $25,000. Analysts polled by FactSet see the company’s first-quarter net income falling 42% from a year ago to $1.46 billion.

Over the weekend, though, Tesla lopped $2,000 off the price of the Models Y, S and X in the U.S. and reportedly made cuts in other countries including China. It also slashed the cost of “Full Self Driving” by one-third to $8,000.