Tesla’s stock took a dive on Monday due to weaker-than-expected quarterly profit. According to Yahoo Finance, Tesla’s quarterly earnings slid 21%, as major indices and electric-vehicle stocks were impacted. This has led to a decline in Tesla stocks, as Elon Musk signaled more pain ahead. Despite the poor results, Tesla continues to work on its production lines, with a never before seen look-in at the Cybertruck Pilot production line at Giga Texas shared yesterday. The company’s revenue report was discussed in a recent update, where Tesla posted its Q1 2023 earnings results of $23.3B in revenue and 19.3% non-GAAP gross margins. However, this report did not meet analysts’ revenue and profit estimates, and gross margin dipped to 19.3% on price cuts, as reported by Yahoo Finance.
Despite the sharp decline in profits, Elon Musk stated that he intends to keep cutting prices to stoke demand even after the markdowns earlier this year took a toll on gross margins, according to Bloomberg. This marks a bullish case for the company, as stated by Gene Munster, Deepwater Asset Management Managing Partner in an interview with CNBC.
Investors and industry analysts are taking note of Tesla’s challenges as well as its efforts to stay competitive in an ever-evolving industry. However, the bar is set high for the company’s earnings report according to Morning Brief, as it faces stiff competition from other electric vehicle makers.
Overall, Tesla continues to face challenges as it navigates through the current economic climate, but the company appears to be proactive in its approach to stay afloat in the industry.
