fbpx

Tesla Crashes

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

·        Misses Top & Bottom line and profit margins

·        Warns vehicle volume will be “notably lower”

Tesla shares came crashing down over 7% in extending trading as the Electric Vehicle (EV) car company reported lower-than-expected earnings for Q4 2023.

Revenue came at $25.17 billion, missing analyst estimates of $25.87 billion. At the same time, adjusted earnings per share (EPS) was $ 0.71, lower than the consensus of $0.73, and adjusted net income was $2.48 billion vs. $2.61 billion expected by the Street.

Gross Margins also missed the mark, coming at 17.6% instead of the 18.1% expected.

Tesla’s decline in profit margins can primarily be attributed to its strategy of cost reduction initiated in late 2022, where the focus shifted towards enhancing sales volumes through price reductions. This move consequently negatively impacted its profitability.

In terms of its full-year production, Tesla issued a huge red flag that its “vehicle volume growth rate may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas,” indicating it would not reach street estimates of 2.19 million for 2024, which would have been a 21% increase from 2023.

Source: Company Financials

Furthermore, the EV company did not issue any forward guidance on its future growth rate in a rare move.

Previously, tesla aimed for a long-run growth rate on its vehicles of 50%; over the last ten years, it has averaged 54%.

However, over the last few years, Tesla’s growth rate has continued to slump as Tesla transitions from high growth to a more modest growth company.

The recent reductions in Tesla’s pricing have had a notable impact, as the company reported that, on average, its vehicles sold at lower prices in the fourth quarter compared to the same period in the previous year.

The EV company is facing a lot of headwinds, including intensified competition that leads to price wars, a slump in the EV demand, supply issues, and an overall challenging macro environment.

On top of that, Tesla also reiterated that it expects the Cybertruck ramp to be “longer than other models given its manufacturing complexity.”

On the positive side, Tesla expects a “next-generation low-cost vehicle” to begin producing at its factory in Texas toward the end of 2025. A mass-market electric vehicle that could be described as a compact crossover.

All in all, Elon’s sales pitch failed to convince investors that its company is in the transition phase and that the growth slump will be temporary; as Tesla’s stock continues to decline, it is down over 27% in the last month.

Investors can long Tesla using our 1x Tesla, 2x Tesla, 3x Tesla.

Alternative, investors can shot Tesla using our -1x Tesla, -2x Tesla, -3x Tesla.

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

Related Posts

Gold is in a healthy correction and higher price levels are likely by year end.
Gold is in a healthy correction and higher price levels are likely by year end.
Violeta-540x540-1.jpg
Violeta Todorova
Gold is in a healthy correction and higher price levels are likely by year end.
Gold is in a healthy correction and higher price levels are likely by year end.
Gold is in a healthy correction and higher price levels are likely by year end.
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Violeta-540x540-1.jpg
Boyan Girginov
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Violeta-540x540-1.jpg
Sandeep Rao
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Violeta-540x540-1.jpg
Violeta Todorova
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
What is an ETF? How does an ETF work? Key characteristics of ETFs.
What is an ETF? How does an ETF work? Key characteristics of ETFs.
Violeta-540x540-1.jpg
Boyan Girginov
What is an ETF? How does an ETF work? Key characteristics of ETFs.
What is an ETF? How does an ETF work? Key characteristics of ETFs.
What is an ETF? How does an ETF work? Key characteristics of ETFs.
Violeta-540x540-1.jpg
Pawel Uchman
A quick primer on leveraged instruments available in markets today.
A quick primer on leveraged instruments available in markets today.
Violeta-540x540-1.jpg
Sandeep Rao
A quick primer on leveraged instruments available in markets today.
A quick primer on leveraged instruments available in markets today.
A quick primer on leveraged instruments available in markets today.

Violeta Todorova

Senior Research

Violeta è entrata a far parte di Leverage Shares nel settembre 2022. È responsabile dello svolgimento di analisi tecniche e ricerche macroeconomiche ed azionarie, fornendo pregiate informazioni per aiutare a definire le strategie di investimento per i clienti.

Prima di cominciare con LS, Violeta ha lavorato presso diverse società di investimento di alto profilo in Australia, come Tollhurst e Morgans Financial, dove ha trascorso gli ultimi 12 anni della sua carriera.

Violeta è un tecnico di mercato certificato dall’Australian Technical Analysts Association e ha conseguito un diploma post-laurea in finanza applicata e investimenti presso Kaplan Professional (FINSIA), Australia, dove è stata docente per diversi anni.

Julian Manoilov

Marketing Lead

Julian è entrato a far parte di Leverage Shares nel 2018 come parte della prima espansione della società in Europa orientale. È responsabile della progettazione di strategie di marketing e della promozione della notorietà del marchio.

Oktay Kavrak

Head of Communications and Strategy

Oktay è entrato a far parte di Leverage Shares alla fine del 2019. È responsabile della crescita aziendale, mantenendo relazioni chiave e sviluppando attività di vendita nei mercati di lingua inglese.

È entrato in LS da UniCredit, dove è stato responsabile delle relazioni aziendali per le multinazionali. La sua precedente esperienza è in finanza aziendale e amministrazione di fondi in società come IBM Bulgaria e DeGiro / FundShare.

Oktay ha conseguito una laurea in Finanza e contabilità ed un certificato post-laurea in Imprenditoria presso il Babson College. Ha ottenuto anche la certificazione CFA.

Sandeep Rao

Research
Sandeep è entrato a far parte di Leverage Shares nel settembre 2020. È responsabile della ricerca sulle linee di prodotto esistenti e nuove, su asset class e strategie, con particolare riguardo all’analisi degli eventi attuali ed i loro sviluppi. Sandeep ha una lunga esperienza nei mercati finanziari. Iniziata in un hedge fund di Chicago come ingegnere finanziario, la sua carriera è proseguita in numerose società ed organizzazioni, nel corso di 8 anni – da Barclays (Capital’s Prime Services Division) al più recente Index Research Team di Nasdaq. Sandeep detiene un M.S. in Finanza ed un MBA all’Illinois Institute of Technology di Chicago.

Gold Retreats But Rally is Not Over

Copper Ready to Explode

Q2 2024 Market Outlook: Rocky Road Ahead

What is an ETF? (Exchange Traded Fund)

How Do Leverage Shares ETPs Trade in Multiple Currencies

Currency Impact