NEW YORK (TheStreet) -- Tesla Motors (TSLA) shares are dropping on Wednesday, down 3% to $231.74, ahead of the electric vehicle manufacturer's third quarter earnings release after the closing bell today.
Analysts are expecting the Elon Musk-led car company to report a net loss of 1 cent per diluted share on revenue of $892.1 million.
Analysts at Morgan Stanley released a research note earlier today saying that there is much investor anxiety surrounding the company's earnings results, but the note also said that the firm is "prepared to buy the dip" if there is a sell off due to disappointing earnings.
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TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk."