Analysts closely watching profit margins after robotaxi hype fades [Video]

Tesla is set to report earnings on Wednesday after the closing bell.

Analysts will be watching profit margins closely. After recent hype surrounding Tesla’s robotaxi, investors will be refocusing their attention on Tesla’s core auto business.

Earlier this month, Elon Musk revealed Tesla’s long-awaited driverless Cybercab at its “We, Robot” event. While the event generated considerable hype for Tesla, the driverless taxi plan has been met with skepticism over its feasibility and competition with rivals.

In the wake of the event, Wall Street has been shifting its focus back to the company’s core business, with the company still seeing the bulk of its revenue and profits from car sales.

Wedbush analyst Dan Ives said in a recent note that margins will be a key focus on the conference call.

“While autonomous, FSD, and robotics is the future for Tesla, deliveries in the near-term will drive the stock and the Street will …