We last discussed Tesla’s earnings troubles in late October, when its lackluster results paired with a technical breakdown in the stock price. Unfortunately for investors, the stock has declined since then, with today’s results failing to spark a turnaround. 🪫
The electric vehicle (EV) maker reported adjusted earnings per share of $0.71 on revenues of $25.17 billion. Both metrics missed expectations of $0.74 and $25.60 billion, respectively. 👎
As we discussed last quarter, Tesla’s revenue growth has slowed to a meager 3%, and its margins have slipped. Operating margin for this quarter was 8.2%, about half the 16% reported in the same quarter last year. Total production rose 13% YoY, with deliveries up 20% YoY. However, average selling prices fell as the company looked to spark demand in a high-cost-of-financing environment for consumers. 🔻
Full-year automotive revenue reached $82.42 billion in 2023, rising 15% YoY. Ultimately, weakness in that segment continues to offset strength in smaller parts of the business like energy (+54% YoY to $6.04 billion) and “services and other” (+37% YoY to $8.32 billion). 🚗
At its core, the company sells cars, so it needs to address significant pressures on both the supply and demand sides of the equation.
As Musk stated last quarter, the key will be to drive costs down enough to profitably sell the car at a mass-market price. Until that happens, investors are left to bet on the company’s longer-term ambitions to support the current valuation. But with Musk threatening those ambitions unless he receives more voting stock, the near-term future remains uncertain for the company and its shares.
$TSLA shares fell about 4% after hours on the news. However, the Stocktwits community remains bullish on the stock and is heavily debating the current quarter on our site. We’ll have to see what the coming days bring, but for now, it looks like Davey Day Trader’s latest trade is a dud. 🤷
