TSLA - 2 Hot Stocks Report Earnings Tomorrow. Investors Should Tune In for Insight.
2023-10-17 08:36:00 ET
As earnings season ramps up, this week includes some big and important names. Two reports wroth watching are electric-car maker Tesla 's (NASDAQ: TSLA) and streaming TV service company Netflix 's (NASDAQ: NFLX) . Both consumer-facing businesses will provide investors with key insight into the economy -- and both companies report earnings on Wednesday. Tesla's results and management's respective commentary will help investors see whether or not its aggressive pricing strategy to help offset the negative impact of high interest rates on affordability is working. Further, Netflix's report will provide insight into consumer behavior toward a discretionary but valuable form of entertainment.
Are consumers pulling back more than expected? Or are they resilient headed into the holidays? Tesla and Netflix's reports may give us insight into these timely questions.
Following Tesla's aggressive price cutting this year, its vehicles generally cost around 20% less than they did at the start of the last year. In Tesla's second-quarter earnings call in July, CEO Elon Musk said it generally aims for demand to track production. So price cuts mean that higher interest rates were likely weighing on demand and the company needed to lower prices to get incoming vehicle orders to keep up with its growing production volume.
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2 Hot Stocks Report Earnings Tomorrow. Investors Should Tune In for Insight.