Following a lacklustre earnings call, Tesla shares fell by 12% yesterday, wiping off almost US$100 billion (RM467 billion) in value. It was the biggest one-day percentage drop for TSLA since 2020, and it left the EV maker’s market capitalisation at just under US$700 billion, down from over US$1 trillion in 2021.
It has to be said that at the current market cap, Tesla is still the world’s most valuable carmaker as investors bet on the future promise of the company led by Elon Musk, who talked about humanoid robots and robotaxis in the earnings call.
That’s in the future, but investors seem concerned about the present. Tesla posted its lowest quarterly profit margin in five years late, with earnings per share missing estimates for the fourth consecutive quarter, Reuters reported.
“All of Musk’s enthusiasm on the call, outside of (energy) storage, were for products that don’t exist,” TD Cowen’s Jeff Osborne pointed out to the agency. On that note, where’s the Semi and Roadster?
It was pointed out that Tesla’s EV deliveries have fallen for two straight quarters, and it has yet to roll out a model that’s more affordable than the Model 3. This has left a big gap for rival EV makers such as China’s BYD to fill.
Tesla has also been forced to cut prices and boost incentives to prop up sales of its aging model range. CEO Musk admitted that rivals “have discounted their EVs very substantially, which has made it a bit more difficult for Tesla”. The company said the cheaper model it expects to roll out in the first half of next year would result in less cost reduction than previously expected.
Analysts believe that Tesla investors are betting on the company’s AI future, but it will be some time before it pays off. “Tesla is not being priced on auto, but autonomy and AI … We believe any payoff from (Tesla’s AI) initiatives (is) further out,” UBS analyst Joseph Spak said, reiterating a ‘sell’ call for TSLA. Analysts, on average, rate the stock a ‘hold’ with a median price target of US$212.50. The stock’s current price is US$215.99.
Musk said in the earning’s call that Tesla’s Optimus humanoid robot had begun performing tasks autonomously in one of its facilities and that he would be shocked if there were no self-driving Tesla cars without human supervision next year. However, back in 2019, Musk told investors that Tesla would be operating a network of robotaxis by 2020.
Not long now though – the robotaxi will be unveiled on October 10.
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its all because Trump statement? “Green Scam” hahaha
Good to see Trump still keeping to tradition of doing worse damage to American companies than China or Russia ever can.
China will take over the market share, Tesla will be the nokia of EV’s, in the next 5 years!
You’re 100% right @carlover. China’s cost of manufacturing is getting cheaper and cheaper thanks to cheap russian gas and more efficient logistic and machinery. TESLA tak boleh challenge la
Now we know where Skynet originate. They have ‘network’ all over the world, they plan for humanoid robot, and developing better AI.
Lets see if any John or Sarah Connor helped by a robot try to bring down Tesla.
Should introduce juniper soon
Tesla cannot beat BYD. Tesla only hero in orang putih punya negara dimana mereka tak berani bawa masuk BYD atau jual BYD pada harga asal. Outside the Zionis West, BYD is whacking TESLA left right and centre.
Puki palestine now mcm whore
its ok as long as shareholders agree to pay their poster boy’s salary