Tesla earnings preview: All eyes on Model 3 production

Tesla (NASDAQ:TSLA) is scheduled to release its latest, fourth-quarter earnings report after the closing bell Wednesday, and analysts are expecting a steep drop in earnings, year-over-year, despite higher revenue.

Analysts polled by Thomson Reuters are anticipating an adjusted loss per share of $3.10 in the fourth-quarter of 2016, versus a loss of $0.69 (adjusted) per share in the fourth quarter of 2015.

They are more upbeat on revenue, with analysts expecting quarterly revenue coming in at $3.28 billion, up from $2.28 billion in the same quarter last year.

Heading into earnings, analysts are cautious, and the headache for Tesla is the pace of Model 3 deliveries. The Model 3 is Tesla’s smaller, more affordable, electric car.

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Tesla has dealt with delays when it comes to its Model 3 production. Most recently, in January the company downgraded its expected production rate for the end of the first quarter to a weekly rate of about 2,500 vehicles, below the 5,000 it previously expected. They added that they intend to achieve the 5,000 per week milestone by the end of the second quarter.

According to Thomson Reuters, analysts currently have a Hold rating on Tesla’s stock and a $342.63 price target. Shares were trading around $340 ahead of earnings.