Electric car manufacturer Tesla has been in the news lately for their 1Q 2023 earnings report. Unfortunately, the report showed a 24% decline in net income from the previous year and Tesla’s profit margins were negatively impacted by price cuts on its vehicles (Yahoo Finance). The earnings results caused Tesla’s stock to drop by 2%, but caught the attention of analysts who are setting their sights on moving forward (Teslarati).
Despite the recent financial struggles, Tesla continues to be a popular stock option. According to Yahoo Finance, the company was one of the stocks trending in after-hours trading on April 19, 2023, along with IBM and Las Vegas Sands.
In the lead-up to the earnings report, Tesla dropped prices on their Model 3 and Model Y vehicles in the US, which caused some concern for the company’s profit margins. Teslarati reported that analysts were focused on how the price cuts would affect the company’s bottom line.
Tesla CEO Elon Musk has also been making headlines recently for his response to reports about upset workers at Tesla’s Giga Shanghai factory over potential bonus reductions. Musk addressed the reports on Twitter and gave reasons for the bonus reductions (Teslarati).
Despite the recent financial struggles and concerns over profit margins, Tesla remains a leader in the electric vehicle industry. The company’s first-quarter earnings may not have met expectations, but analysts are looking ahead to see what the future holds for Tesla.
