Red flags are popping up around Tesla, even as the company is expected to report another profitable quarter this week.
A falling share price, expiring electric vehicle credits and a mountain of debt in about five weeks all loom over Tesla as investors wait for its fourth-quarter earnings release after the markets close Wednesday. They'll be looking to see how the last three months of the year compared with its strong third-quarter results, which surprised investors with a profit, better-than expected car sales and faster production of its Model 3 sports sedan.
CEO Elon Musk said earlier this month that Tesla was also profitable on an unadjusted basis during the fourth quarter, although it was smaller than the previous three months. Musk hinted at the results in announcing layoffs of about 7 percent of the company's workforce, as it struggles to remain "sustainably profitable" as Musk has promised.