Hyunjoo Jin & Nivedita Balu

SAN FRANCISCO (Reuters). Tesla shareholders will monitor Wednesday’s progress to ensure that the electric car manufacturer meets its ambitious 2022 delivery targets. The biggest Chinese factory, Shanghai is currently in shutdown due to COVID-19. Meanwhile, new production plants continue to ramp up.

Tesla (NASDAQ:), reports its quarterly results. Analysts are asking whether Elon Musk, CEO of Tesla (NYSE:), will be discussing his $43 billion offer to purchase Twitter (NYSE:). They also want to know if he plans to use Tesla shares to finance the transaction.

Analysts said that Tesla’s Shanghai factory suspension and the cost of building new factories in Berlin or Texas would have had an impact on first-quarter earnings.

Musk claimed in January, that Tesla’s volume growth would easily exceed 50% over last year. That means Tesla is expecting to sell more than 1.4million vehicles this year.

Tesla was able to navigate the global supply chain crisis more effectively than its rivals and posted record earnings and deliveries for many quarters. However, its Shanghai plant was forced to close for over three weeks after Shanghai implemented lockdown measures against a rise in COVID-19 case.

A news report claims that Tesla has resumed production at the Shanghai factory on Tuesday.

“The Shanghai restart time (and) Berlin/Austin ramp are an added element to the 2022 delivery of goods.” Credit Suisse Analyst Dan Levy indicated in a client letter that the SIX was.

We expect significant attention to gross margins in the 1Q print. “We expect… an inverse of Tesla’s recent streak of high margins.”

According to data from Refinitiv, Austin-based company will post $17.80 Billion revenue in the January to March quarter. That’s an increase of more than 70% from last year, but it is still relatively unchanged from the preceding quarter.

Refinitiv has a mean analyst estimate of Tesla’s earnings at $2.26 per shares. This increase is compared to 93 cents per shares a year ago, however, this quarter marks the first quarterly decline in two years.

Musk handed Tesla the first Texas-made Model Y vehicle at a glamorous event earlier in this month. But, Texas cars are not yet listed on Tesla’s ordering website.

“It’ll probably be a while before the Texas factory can get up to full speed,” Guidehouse Insights analyst Sam Abuelsamid said, citing challenges of launching volume production of 4680 cells https://www.reuters.com/business/autos-transportation/musks-plan-tesla-built-batteries-has-an-acceleration-challenge-2022-03-11 likely to be used in the Texas vehicles.

Investors and analysts are also curious about how Musk’s search for Twitter might impact his management of Tesla. Musk, SpaceX CEO, stated previously that he would split his time between Tesla’s rocket business and Tesla.

“Running Twitter would be a possible distraction https://www.reuters.com/technology/musks-twitter-play-sparks-concerns-about-distraction-stock-sales-tesla-2022-04-15 for a CEO that already has a full plate,” Wells Fargo In a report

Goldstein explained that, even if he attracts private-equity investors to support his Twitter bid, it is likely that he will be a major shareholder in the social network company. That means that he may have to sell Tesla stocks in order to finance the deal.

Musk stated last week that he wasn’t sure if he could acquire Twitter. He also said that he had a plan B in case Twitter rejects his offer.