Tesla damage from meltdowns on Elon Musk’s Twitter. The question is how much?

It’s a tough time being a Tesla fan. The resale value of once-popular electric vehicles is dropping as the company’s stock price drops. Meanwhile, Tesla CEO Elon Musk has been obsessed with it One Twitter collapse after anotheroften due to decisions such as his recent moves to Temporarily invite again and once blocked White supremacists and neo-Nazis.

Later today there will be another test as the company reports on it Fourth quarter fiscal earningsduring which he will either prove the haters right or recharge many fans’ beliefs in the company.

The past three months have been a whirlwind, even for a company like Tesla, whose mercurial CEO has already become a fixture in the Twitter world. With his tweets, he exaggerates the future he imagines, while disparaging journalists who ask tough questions. Since paying more than $44 billion to take over as owner and CEO of Twitter, Musk has turned that approach into overdrive, sharing conspiracy theories, Attacking the transgender community and tweeting back and forth with extremist political commentators.

Meanwhile, Tesla shares fell 65% last year, driven in part by fears that Musk has locked out customers and spread himself too thin at a time when competition from Giants like General Motors, BMW and Toyota heat up. The company’s shares recovered some of their losses from the beginning of the year, rising about 33% to $146.10 — still well below the company’s adjusted split rate. Record $407 Just over a year ago.

On Wednesday, the company is scheduled to report earnings and sales for the holiday shopping season. Usually, this will be a rote financial statement, as analysts and investors read the statements to get the latest insights into the popular electric car maker. But this time, it may be a referendum on the company’s future, and whether it can succeed despite Musk’s interest split with other projects such as SpaceX rocket launchmedical Start Neuralink And of course Twitter.

“There’s a lot of bad news already trapped in Tesla stock,” Wedbush analyst Daniel Ives wrote in a letter to investors earlier this month. “The Cinderella ride is over for Tesla and Musk now needs to navigate the company through this Category 5 dark macro storm instead of focusing on Twitter his new golden baby which remains a distraction and overlay for the Tesla story/stock in our opinion.”

Many analysts have used the term “distraction” when describing Musk’s apparent obsession with Twitter. He’s been gobsmacked by the amount of time he’s spent on the struggling social network since taking over as its CEO.

Oppenheimer analysts wrote in a letter to investors last month, when the company Among the first in years To downgrade Tesla shares from “Outperform” to “Perform”. “We see the potential for a negative feedback loop of advertisers and Twitter users leaving…just as Tesla’s competitive environment intensifies.”

In better times, Musk might have weathered this storm better. After all, it was once the tech industry’s answer to billionaire comic book industry magnate Tony Stark, aka Iron Man. And as with any good modern drama, the main character is far from perfect, and his future is equally uncertain.

Analysts, on average, expect Tesla to post earnings of $1.13 per share on approximately $24 billion in sales, according to For surveys published by Yahooinance. That would represent a 32% jump in profits on a 35% increase in sales.

Investors and analysts will also listen closely to what Musk says on a conference call after the earnings announcement on Wednesday. company Reducing the prices of its cars by up to 20%. Earlier this month, analysts saw the move grab competitors, though it also upset existing Tesla owners and retailers, who suddenly had to deal with paying more or getting a sale less for their used car.

Price cuts have a huge impact [Tesla’s] “The economy,” Bernstein analyst Tony Sacconaghi said in a note to investors beforehand Tesla earnings report.