Wells Fargo analysts anticipate that Tesla (NASDAQ:TSLA) will fall short of expectations for the first quarter when it announces results on April 23. According to their analysis, the expected shortfall is already factored into investor expectations, given Tesla's reported weak deliveries during the quarter.

The analysts project a first-quarter EPS of $0.40, which is below the consensus estimate of $0.54. They attribute their lower projection to price cuts, decreased deliveries, rising labor costs, and poorer operational leverage. Furthermore, Wells Fargo reduced its full-year EPS forecast for Tesla by 20% to account for the sluggish pace of deliveries in the first quarter.

Despite these challenges, the investment bank noted that Tesla might focus on the advancements of its Full Self-Driving technology during the earnings call, which could temporarily divert attention from its core financials. However, Wells Fargo emphasized that, ultimately, the fundamentals are likely to regain focus once the initial excitement subsides.