Tesla reports 4th-quarter earnings on Wednesday amid a record-breaking stock rally. Here's what 4 Wall Street analysts are talking about.

Price target: $360

Rating: Underweight

Tesla's "4Q margins and full year 2020 demand outlook will be in focus. We believe that results and outlook must be strong to support the recent rally ... and we expect them to be," Adam Jonas of Morgan Stanley wrote in a note Tuesday.

Jonas forecasts fourth-quarter auto gross margin to be 19.7% before credits, versus 20.8% in the third quarter. "We believe the company has several levers at its disposal (including service revenue, revenue recognition from OTA updates and provision timing) to provide decent support in gross margins until the China plant is sufficiently ramped by mid-year," he wrote.

In addition, Jonas forecasts 2020 full-year deliveries of 489,000 units, up 36% on the year. Morgan Stanley said it believes investors will focus on any commentary around the status of the China Gigafactory ramp-up, as well as the status of construction on Tesla's Berlin Gigafactory.

Price target: N/A

Rating: Market perform

"We believe the unit and gross margin outlook for this year will be the most important pieces of information to focus on," Joseph Osha of JMP Securities wrote in a Tuesday note.

He continued: "It has been remarkable to watch the stock appreciate, and even though we think some of the move is merited given TSLA's competitive position, we do not think the stock is attractively valued at this point."

"Any stock sitting on a 25x multiple of EBITDA is vulnerable to negative surprises, and even considering our above-consensus unit outlook we believe the market is more likely to react to a near-term reversal in gross margins."

Osha writes that Wall Street estimates for 2020 deliveries appear low: "it is hard to see how a company coming out of 2019 on an annualized run rate of 448K units can only ship 464K in 2020, even as a new factory ramps." He also notes that the fourth quarter of 2019 should see depreciation from Shanghai included into the P&L for the first time.

Price target: $612

Rating: Outperform

"Given TSLA shares having rallied to uncharted territory, we highlight what we view as critical variables to watch for on TSLA shares and specifically for this Wednesday's results," wrote Colin Rusch of Oppenheimer in a note Monday. He added that investors will likely be watching Tesla's 2020 delivery guidance, margin, and free cash flow numbers closely.

On Tesla's 2020 guidance: "While the consensus estimate remains 465K vehicles in 2020, we believe investor expectations are closer to ~480K-plus, which we view as reasonable to achieve."

Rusch anticipates Tesla will have automotive general margins "in line or above consensus of 21.9% and guide to GM headwinds in 1H20 due to seasonal weakness and China under-utilization while highlighting potential for China cost structure at full ramp," which will drive free cash flow.

Rusch also wrote Monday that he expects "limited information" on Tesla's incremental technology development and National Highway Travel Safety Administration investigations. He does, however, "anticipate incremental information on TSLA's insurance offering take rate. We also believe there is speculation among investors that TSLA could begin underwriting select leases."