Dallas tesla inventory11/19/2023 ![]() ![]() ![]() Yet, that hasn’t stopped Tesla from cutting prices further. Profits and revenue are way up, but investors and pundits alike aren’t all that thrilled with the brand’s reduced profit margins on its models, because of its drastic price cuts. ![]() Tesla’s second quarter results may have been somewhat of a mixed bag. Unveiled in China on Monday, it turned out to be just a new wall box for charging your Tesla.Ĭharge your Tesla, Energize your life□Cybervault is available now⚡️ ’s penchant for price cuts hasn’t slowed down. Meanwhile the Cybertruck’s precise launch date this year remains just as unknown as its precise technical specs or prices.įollowing last month’s disappointing investor day and a coup by rival Volkswagen to steal Tesla’s thunder, the yearning for fresh new products to propel its growth narrative was evident in the wild speculation over the “Cybervault” teased last week. Semi production itself is too negligible for Tesla to even bother publishing, with commercial vehicles delivered to customers likely numbering in the dozens rather than hundreds. No carmaker has come anywhere remotely close to that, let alone using just one brand to do so and selling perhaps just 10 different models-half of which already have been launched with the Model S, X, 3, and Y as well as the recently launched Semi. The math to reach that figure, however, beggars belief: The roughly 1.8 million cars targeted this year would have to soar to 5 million by 2026 before quadrupling just four years later to deliver on his vision. The problem for Musk is that his carmaker is valued as a growth stock thanks to its prediction that annual sales will increase to 20 million vehicles a year by 2030. It’s no coincidence then that Tesla’s automotive gross margins-a closely followed metric of earnings power-peaked at 32.9% in the first quarter of 2022, just before the two new sites began pumping out cars. Its two new car plants in Germany and Texas recently hit fresh weekly production records and are increasingly absorbing local demand its massive factory in Shanghai once served.Įffectively they are now competing with Tesla’s highly profitable Chinese operations for customers. Tesla is reaching a size where it struggles to maintain its lofty growth ambitions with its present product range at current list prices. Speculation over Cybervault highlights yearning for new product “Delivery growth will have to quicken hit Musk’s annual target,” wrote Gene Munster, a managing partner with Deepwater Asset Management and Tesla bull. Higher than recent quarters but still reasonable vs historical supply levels and still significantly below the industry, which is 2-3x this number depending on the manufacturer. Tesla enters Q2-23 with 88k inventory vehicles or 16 days of sales. Yet when your stock is the eighth most valuable megacap in the world and is worth $650 billion, more than the next seven largest automakers combined, there is precious little leeway for disappointment. Instead of the typical focus on year-over-year volume gains-where Musk always impresses thanks to the growing adoption of EVs-investors importantly cast their judgment based on Tesla’s improvement from one quarter to the next.Īnd here the 4.3% increase over Q4 is lackluster at best when viewed in conjunction with growing inventories and price cuts.īulls argue the first quarter is traditionally weak because of the Chinese Lunar New Year, while sales were hampered because price cuts only began bolstering volumes starting in mid-January. Tesla is judged differentlyĪs a growth stock that aspires to an average annual volume growth of 50%, a truly staggering figure in the manufacturing industry, it’s important to remember the market judges Tesla’s development differently from that of other incumbent carmakers. Musk’s own Twitter warriors used his Community Notes feature to prod Reuters into correcting a headline that Q1 deliveries actually fell short of expectations (the news agency uses its own proprietary polling data from data partner Refinitiv that differed from those compiled by Bloomberg). ![]()
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