Elon Musk Reacts To CNBC's Tesla Earnings Critics
Channel: Stock Docta' Trading
Date: 26/01/2023

#tesla #tsla #elon #musk #earnings $tslastock #shorts 

Hey, Scott, we've got to be on the top and the bottom line from Tesla. But it's the numbers within the numbers, and we're going to talk about that with automotive gross margins in just a little bit. First of all, on the top and the bottom line, they earn a buck 19 a share better than the expectation of a buck 13 revenue coming in at 24.32 billion.

The Street was expecting 24.15 billion. So there's your beat on the top of the bottom line. But the automotive gross margins, excluding zero emission vehicle credits, was expected to come in at 26.2%, came in at 24.3%. So considerably lower than many people were expecting. Which raises the question, how much of this is because of the price cuts cutting into margins in China coming in at 24.3%, which is lower than what most were expecting.

Most had it at 26.2, 26.3%. Remember, it was 26.8% in the third quarter and over 29% in the fourth quarter of last year. So that shows you the margin compression that is taking place there.

Tesla's recent earnings release revealed mixed results, with the company beating expectations on the top and bottom line but falling short on automotive gross margins. Earnings per share came in at $1.19, surpassing the expected $1.13, and revenue was reported at $24.32 billion, beating the estimated $24.15 billion. However, the automotive gross margins, excluding zero emission vehicle credits, were reported at 24.3%, lower than the expected 26.2%. This raises questions about the impact of price cuts in China on margins, as the company has seen a decrease from 26.8% in Q3 to 24.3% in Q4. It is worth noting that in the fourth quarter of last year, the gross margin was 29%. This highlights the margin compression taking place in the company.

Historically, Tesla's stock has been highly volatile, with significant fluctuations in price over the years. The company went public in 2010 at $17 per share and reached a high of $917 in January 2022, before falling back to $800.
The company had a history of losses, but in 2019 it turned profitable, and has been profitable since then.
In the past earnings releases, Tesla has consistently beat the estimates on both EPS and Revenue. But the stock has been highly dependent on the guidance provided by the company, which has been a major driver of the stock in the past.

Overall, the recent earnings release shows that while the company is still performing well financially, there are concerns about the impact of price cuts on margins. Investors will be closely monitoring the company's guidance and any potential strategies to mitigate margin compression in the future.

Elon Musk is the CEO and founder of Tesla, and is widely considered to be one of the most visionary and influential leaders in the technology industry. He is known for his ambitious goals, bold statements, and his ability to disrupt traditional industries with innovative new technologies.

Musk has a significant ownership stake in Tesla, owning approximately 20% of the company's shares. This gives him a significant amount of control over the company's direction and decision-making. He has been instrumental in driving the company's success and growth, and his leadership and vision have been key factors in the company's impressive performance in recent years. He is also a major shareholder of SpaceX, Neuralink and The Boring Company, which are all private companies


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