Elon Musk is scheduled to present earnings for Tesla on Wednesday for the first time since Donald Trump, a close ally of Musk, returned to the White House.
Tesla's fourth-quarter results conclude a mixed year for the company. Despite financial pressures caused by price cuts in vehicles due to growing electric vehicle (EV) market competition, Elon Musk's significant gamble on Trump's presidential campaign ended up being successful.
Analysts are predicting a slight increase in earnings per share compared with the previous year's period. Nonetheless, attention will centre on Musk's forecast for the upcoming term.
Tesla enthusiasts eagerly await Musk's latest update on whether the automated vehicles scheduled for release in 2025 are on schedule and if he continues to anticipate an increase in car sales of 20 to 30 percent in the upcoming year.
There is also much curiosity about how Musk's allegiance with Trump -- part of the billionaire's increasingly assertive backing of far-right politicians globally -- will impact Tesla.
Many have become very optimistic about the company.
"Our time spent speaking to many in the Beltway over the past few weeks has given us increasing confidence that the Trump White House will be a 'total game changer' for the autonomous and AI story in the next four years for Tesla and Musk," said a note from Wedbush that raised the share price target for Tesla.
Among the flood of executive orders issued on the first day of the new administration, Trump recently targeted electric vehicles, promising to reverse policies that favor gasoline-powered cars and hinting at a potential cancellation of US tax credits for electric vehicles.
The actions are consistent with Trump's stated opposition to EVs during his presidential campaign.
Since the election, shares in Tesla have increased by more than 55 percent.
Market analysts think Tesla may benefit from new rules from the US government to encourage the development of autonomous driving technology, which Musk has referred to as a massive market opportunity for his company.
"A lot will depend on Musk's ability to keep investors focused on the long-term narrative and ignore some short-term challenges," Garrett Nelson, analyst at CFRA Research, said of Wednesday's earnings.
Earlier this month, Tesla announced that its full-year auto sales totalled approximately 1.8 million vehicles, a slight drop from the previous year, following underperformance in the fourth quarter.
Tesla has faced pressure to launch new vehicles, especially at lower price points. Investors welcomed a statement from Musk in July that a new, more affordable model is planned for introduction by the first half of 2025, although the company has provided limited information since.
Elon Musk stated in October that he predicts a 20 to 30 percent surge in automobile sales this year.
However, a January 24 note from Morgan Stanley now predicts around a 10 percent production hike "in light of pressures on the electric vehicle market."
National autonomous policy?
A significant portion of Tesla's market value exceeding $1.2 trillion can be attributed to the expectation of achieving groundbreaking innovations in autonomous driving, robotics, and artificial intelligence under Musk's leadership.
To date, Tesla's driver-assistance programmes like "Autopilot" and "Full Self-Driving Capability" have fallen behind other companies, like Waymo, in achieving driverless operation without human oversight.
However, Musk has spoken publicly about his ambitious plans to commercially launch robotaxi services within a timeline that some believe may be overly optimistic, considering Tesla's past accomplishments.
Before the election, Musk expressed support for a national policy on autonomous driving during Tesla's October conference call.
Billionaire entrepreneur Elon Musk is likely to comment on what he thinks national regulations for autonomous driving will be like now that he has a seat at the Washington table.
This week's earnings announcement coincides with growing scrutiny of Musk's expanding influence and increasing criticism.
A coalition consisting of a public employees union has filed a lawsuit to prohibit Musk's Department of Government Efficiency, alleging that the commission violates federal laws and is hindered by the conflicts of interest of an influential "libertarian billionaire class."
Days after being criticized for performing a hand gesture similar to a Nazi salute at Trump's inauguration, Musk was again at the center of controversy last weekend for expressing support for Germany's far-right, anti-immigrant Alternative for Germany party. He implied that young Germans should be free to "move beyond" feelings of regret for the Holocaust's atrocities.