Investing.com - Tesla (NASDAQ:TSLA) is set to report Q4 2016 earnings today after US markets close.
Wall Street is expecting the company to post a net loss of -$0.13 per share, on $2.2 billion in revenue.
Tesla shares gained more than 50% in just three months on minimal stimulus, and the company now has a market cap of over $44 billion.
Tesla is currently worth almost as much as General Motors (NYSE:GM) and Ford, whose market caps stand at $56 and $50 billion, respectively.
Tesla is still relatively new and not yet a well-established company so much about its actual capabilities remains unknown.
However, a few factors are pushing Tesla's valuation higher, such as its charismatic CEO – Elon Musk; Tesla's futuristic and innovative branding which creates a buzz around the company's cars; and the company’s mission of an energy revolution, on which Tesla hopes to capitalize.
Though these factors are appreciated, we recommend making investing decisions based on tangible numbers, not promises down the road.
Tesla has missed important deadlines in multiple occasions, and at this time and valuation, it is best to stay on the sidelines.
Potential investors should wait till more information emerges about true production time lines for the Model 3.