Tesla (TSLA) stock rose in early trade and is poised to finish the week higher and snap an eight-week losing streak. The stock’s rebound comes as earnings are set to be released on April 22.
Late Thursday, Reuters reported that Tesla was looking to hire chip engineers in Taiwan, which is notable because TSMC (TSMC34.SA), one of the largest chipmaking companies in the world, is based there.
This comes as Tesla stock jumped this week on optimism on the chip front, with CEO Elon Musk claiming early Wednesday that Tesla was “taping out,” or had completed the final stage of the chip design process for its upcoming AI5 chip, destined for future EVs, massive training clusters, and Optimus robots.
The news on AI5 comes as Tesla has its own ambitious plans to fabricate its own chips at its upcoming Terafab facility. Analysts and experts claim the move to create its own “fab” is highly ambitious and likely a massive engineering challenge.
Some good news on Tesla’s chipmaking efforts — though more of a long-term play —coincides with the company’s upcoming first quarter earnings report, slated for Wednesday after the bell.
Read more: Live coverage of corporate earnings
Analysts expect Tesla to post revenue of $22.7 billion, down 8.5% compared to a year ago, on earnings per share of $0.39. Tesla’s adjusted EBITDA is expected to slip to $3.277 billion, down 14.4% versus Q1 last year.
Earlier this month, Tesla reported Q1 deliveries of 358,023 vehicles globally, versus 364,645 expected, up 6.3% year over year. However, the company’s total from last year was down due to the changeover to the new Model Y, meaning Q1 results from last year were unusually low.
The company is also expected to give an update on its full self-driving (FSD) and robotaxi efforts, which would be a big shot in the arm for Tesla.
Morgan Stanley predicts Tesla will surpass 10 billion FSD miles shortly, a major milestone for the company and one that could lead to more breakthroughs, given all the data collected.
Future rollout plans of new cities for Tesla’s fledgling robotaxi service will be expected, as the company’s progress in this area has been slow to date. Currently, only Austin, Texas, and the San Francisco Bay Area are offering services, with safety drivers in most of these vehicles.
Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
