New Delhi:- Tesla plans to release second-quarter results after the bell on Wednesday. Investors will be looking at the details of the much-delayed Cybertruck and how Tesla's repeated price cuts have affected the car's gross margins.

Wall Street estimates expect Tesla to make about $24.9 billion in revenue in the quarter, up nearly 50% from $16.9 billion a year earlier. Tesla shares are up 168.62% year-to-date. The price closed at $290.38 on Monday afternoon. This was sparked by the news that the first Cybertruck was finally built over the weekend.  

Over the weekend, Tesla tweeted that it was finally launching its first Cybertruck at Giga Austin, a news that sparked both fanfare and skepticism.

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The skepticism stems from Tesla's lack of details about the truck or its production schedule. The futuristic angular pickup with stainless steel body was first introduced in 2019. Production and deliveries are scheduled to start in 2021. Tesla has repeatedly delayed production, citing parts shortages.

After the news that Tesla built an entire Cybertruck, some accused the automaker of creating hype, boosting its stock price and distracting attention from other issues by releasing news that it was close to winning. Here are some tidbits we'll be hearing on Wednesday. How Tesla will price the Cybertruck, what other specs the company will announce for the vehicle, when first deliveries will begin, and when automakers will start mass production.  

I would also like to know what the production capacity of Tesla's Cybertruck will be. Musk said at Tesla's 2023 annual shareholder meeting in May that Tesla could ship 250,000 to 500,000 cars a year once production begins. Let's see if Tesla narrows down that number tomorrow. Analysts at Wells Fargo and Wedbush both expect auto gross margins to fall to 17.5% as Tesla continues to cut prices in the U.S., Europe and China.

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Price cuts in the U.S. and federal EV tax credits appear to have boosted Tesla's sales over the past two quarters. In the second quarter, Tesla set global production and delivery records of 479,999 and 466,140 vehicles respectively. This was up 10% quarter-over-quarter and 83% year-over-year. These discounts may have boosted sales, but they may have also impacted margins, as they did in the first quarter. 

Gross margins fell below 20% in the first quarter, hurting the company's traditionally strong car sales. Operating margins, an area where Tesla has been an industry leader, have also fallen from 19.2% in Q1 2022 to 11.4% in Q1 2023. The company's net income in the first quarter was $2.51 billion, down 24% year-over-year.

Some of these losses are due to vehicle rebates and some are due to increased production. In the first quarter, Tesla will likely spend $2 billion on capital expenditures to ramp up capacity at new and existing factories. Analysts seem divided on whether to worry about Tesla's stock price. Some say Tesla is overvalued and will soon lose market share from automakers as competition intensifies.

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And if Tesla's advanced driver-assistance system (ADAS) product, Fully Self-Driving (FSD), improves and becomes more widespread in the future, some believe the company's strategy of targeting higher volumes at lower margins could pay off in the future. Tesla bulls generally see the company as more than just an automaker, arguing that Tesla is everything from his AI company to a sustainable energy company. 

Last quarter, a number of automakers and charging companies announced they would be using Tesla's NACS standard to build cars and charging stations. While no significant sales are yet expected from other manufacturers' EVs that use the automaker's supercharger network, the company has received news of plans to build a larger network and expectations of revenue growth in this area.

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After Tesla has got up with the new Cybertruck in Austin, Texas that was spotted driven by Elon Musk himself has made some of the procrastination after the sales and the earnings after the EBIDTA this year.