Tesla shows it still has chargeTesla’s earnings beat has shown that despite rising electricity prices and lowered demand – EVs are still in.
- Tesla has announced its Q4 earnings results which surpassed analyst expectations. The Musk-led EV giant reported earnings to have beaten predictions of $1.13 per share with $1.19, and also beat revenue expectations of $24.16bn with $24.32bn reported. Its automotive revenue came in at $21.3bn – marking a 33% increase from the same quarter a year ago.
- The positive results were in part due to the price of its electric vehicles being slashed in 2022 – a move which seems to have done wonders for Tesla’s sales. Musk said on a call with shareholders that during this month, the company had seen the best orders YTD in its history. People can’t resist a deal, it would seem.
- Tesla’s also ramping up production at its factories for the coming year – which has some analysts confused as to why the EV giant hasn’t increased its production target to match. Musk’s justification was that unforeseen circumstances could interrupt its production levels. Though with its share price up by 33% YTD, Tesla looks ready to shake off the slump.
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An electric recession?Tesla’s recently announced price cuts might help Tesla, but they aren't doing the electric vehicle market any favors.
- Tesla announced on Friday that it will be cutting prices on its electric cars in the US and Europe, as it attempts to revitalize its sales after seeing disappointing full-year delivery numbers. The move might entice potential customers, and could allow the company to qualify for additional EV tax credits.
- The price cuts, however, are putting pressure on smaller EV makers, which are already having to cope with skyrocketing electricity prices and more cautious consumer spending habits. Tesla competitors Rivian, Lucid Group and Fisker were all sliding down last week – dropping by 6.4%, 2% and 9.7% respectively on Friday.
- Last year saw US car sales reach their lowest level in a decade, as fears of a recession in 2023 continue to circulate. Analysts reckon that Tesla’s size means it would be able to weather a recession, but whether its smaller competitors will be able to grow quickly enough to survive remains to be seen. It’s another in the long list of industries feeling the squeeze right now.
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Back in the driver's seat?After a tough 2022, Tesla has reported some promising stats on vehicle deliveries – but is it enough to convince investors?
- Tesla has reported that its vehicle deliveries reached 1.31m over 2022, marking a 40% increase in deliveries compared to last year. It’s also made 2022 Tesla’s best ever year for deliveries, which are the closest thing to sales that the EV maker discloses.
- Despite the impressive annual growth, Q4 deliveries came in short of expectations. Analysts had expected 427k deliveries for the quarter, with the real figure only reaching just over 405k.
- Tesla share price plummeted by almost 65% over 2022, and analysts warned last month that weakening demand for electric vehicles will continue to put pressure on the company. With Musk himself selling billions in Tesla shares last year, confidence in the EV brand is looking shaky.
A 12-month lowElon Musk has come on record to explain Tesla’s recent underperformance. Whether it will help its share price, is another question.
- Shares in Tesla have tanked by almost 21% over the past month to a new 12-month low, and Musk has offered an explanation as to why. Elon’s pulled out the old “macroeconomic factors” card, but investors are having a hard time buying it.
- Tesla has seen a 52% drop since April, but the downfall hasn’t been seen in some of its competitors. By comparison, shares in Ford and GM have only fallen by 26% and 12% respectively over the same period of time.
- The situation has become severe enough for the company to offer incentive schemes and discounts in the Chinese market in an effort to boost its dwindling sales. Skyrocketing electricity prices have also weighed on the appeal of EV ownership in Europe.
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A brand on collision course?Tesla stock has been sliding down the charts recently, and a new survey has granted some insight into why.
- Shares in Tesla fell by 4% yesterday and are down by 10% since the start of the week, as confidence in the brand seems to be in decline. An opinion poll released by YouGov showed that fewer than 40% of Americans who have heard of the brand think it’s a good company. It’s probably hurt old Elon’s feelings, who’s already dealing with losing his crown as the world’s richest person.
- An opinion poll might not sound like damning evidence, but it’s a bigger problem than you might think. Tesla is hugely popular amongst retail investors – making up approximately 10% of the average retail investment portfolio. As a result, general perception of the company can have a major impact on the share price.
- Tesla’s taken a beating in 2022 – more than halving in value since the year began. Aside from that, it’s also had to deal with a criminal investigation into its “self-driving” vehicle claims, which was filed in October. Musk might have to work some of his magic to stop the company from veering off the road.
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Just trucking alongTesla finally releases its loooooooong-anticipated electric truck, but should the brand be focusing on demand problems instead?
- Tesla shares dropped 6.3% on Monday as reports began swirling that the EV giant has plans to cut production at its Shanghai plant – a major source of production and a designated export hub. Rumor has it the brand could cut production by over 20% from the month before.
- It got investors worried that demand in China could be a cause for concern. It’s one of Tesla’s biggest markets, and recent price cuts and offered incentives like insurance subsidies have already got it in people’s heads that demand isn’t keeping up with the increased supply that came with a recent increase in capacity at the plant.
- At least Tesla has at last made progress on the truck front, five long years after first announcing the product – Elon Musk revealed the production-ready fully-electric Semi Truck, handing the first few models to Pepsi. How the CEO found time to do that while also banning Kanye from Twitter and using a brain-chip on a monkey is anyone’s guess.
Total RecallTesla stock is reversing deeper and deeper into the mud slide as investors contemplate back-to-back recalls and a distracted CEO.
- Tesla shares hit a fresh two-year low on Monday, sinking nearly 7% to take its November losses to over 26% – now its worst month on record. Ouch. The reasons for this month’s decline are similar to those dragging the stock down most of the year, with a few new twists in the gut for both the brand and its CEO.
- The products themselves have faced a few setbacks. The first was a double recall that will affect over 350k vehicles in total, though there was a bit of headline hyping here given the updates can take place over the air. The second was reports of the first covid deaths in China in over 6 months – it's a key production region for Tesla so lockdowns will mean lower deliveries.
- Investors also worry that CEO Musk is too distracted to give Tesla the TLC it clearly needs – even though Elon himself has lost over $100bn in wealth this year bc of falling prices. Musk has also sold about $19bn of Tesla stock in 2022 for his Twitter purchase, a buy that continues to make headlines for firings, resignations, scary emails, and controversial account comebacks from the likes of Trump and Kanye.
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Pulling into controversy stationTesla investors are getting sick of things backfiring as a recall hits the press and the brand’s CEO makes headlines. Again. Which, tbf, they should be used to by now.
- Tesla is having to recall over 40k of its 2017-2021 Model S and Model X vehicles because of a potential issue with the power steering assist that caused some vehicles to lose their power steering when driving over bumpy roads or potholes.
- CEO Elon Musk is doing a recall of his own – taking his own money back. Musk disclosed on Monday that he has dumped another $3.95bn worth of his Tesla shares on Tuesday, taking his total sales since he launched his Twitter takeover bid to nearly $20bn.
- This is just what investors were afraid would happen after Musk put his finger in the Twitter pie, that he’d be selling a large block of his stake to fund the deal – the fears have been hanging over Tesla’s stock price for months, now down over 42% since the bid was made. Will things get worse the more money Elon pumps into Twitter?
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Is Tesla losing its spark?Tesla’s chaotic third quarter was a mix of successes and failures, but an ever-ambitious Musk makes promises that the best is yet to come.
- Tesla shares dropped 4% in extended trading after the EV giant reported EPS that just beat estimates at $1.05 but revenues that missed at $21.45bn. Bright spots included a 55% jump in automotive revenue and net income more than doubling to hit $3.33bn; concerning news included warnings on supply bottlenecks and a delivery disappointment.
- Musk was on the earnings call, and there’s a lot to take in. The CEO assured everyone they’re seeing huge demand in Q4 already, and though he seems certain a recession is looming, Tesla is “pedal to the metal”. He also noted a “meaningful” buyback on the way, said Tesla could soon be worth more than Apple, and reassured everyone his expensive Twitter deal will be worth it. Told you – it’s a lot.
- The EV industry was in the news for a bunch of reasons on Wednesday. Biden’s administration said it’s rewarding $2.8bn in grants for projects to expand US manufacturing of batteries for EVs and reduce reliance on China. As we saw in Tesla’s earnings, supply crunches are squeezing the EV industry, and this could boost not only Tesla’s production but the overall adoption of EVs.
Andres Jasso / Unsplash / Tesla
An intense week for Elon stocksTesla investors will bookmark this week as one to forget after the stock had its worst week since the pandemic hit in March 2020 amid more moves from Musk.
- Tesla shares sank just under 16% last week to hit their lowest close since mid-June and knock 13 points off the S&P 500, now down over 26% in the last three weeks. The stock spent the pandemic rallying and around this time last year became the fifth ever company to hit a $1tn market cap, but prices have lost nearly 15% of their overall value since then.
- It was a “very intense 7 days” according to Elon, much of which was down to the CEO’s actions. After Tesla’s disappointing delivery numbers last weekend, Musk made some mad moves like posting a controversial Twitter poll on Ukraine’s future that earned backlash from its officials and others, and deciding he will in fact buy Twitter for $54.20 per share.
- A judge says Musk must complete his Twitter purchase by October 28 in order to avoid going to trial, so stay tuned for more moves. Some TSLA shareholders worry that if it goes through, Musk will be less focused on management duties at the EV company, with shares down 25% since Twitter first accepted his offer in April – Twitter has maintained much of its gains from last Tuesday’s 22% jump though.
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Keeping up with ElonThings are getting heated in the world of Elon Musk for both his EV biz and his Twitter deal. Oh, who are we kidding, things have been heated here for a while.
- We’ll start with the fundamental stuff – Tesla’s deliveries. The EV leader reported Q3 vehicle production and delivery numbers, and while they came in at a record high, the 343,830 deliveries still missed Elon’s previous forecast – the company cited the same old supply snarls and macro pressures as everyone else, but also says Tesla is aiming for “steadier” deliveries in Q4.
- Elsewhere in Elonland, we got insight into how the rich text about their billions when a series of Musk’s personal texts were revealed in his court case against Twitter. There was many a revealing message in there, including the fact that the social platform’s founder Jack Dorsey doesn't even think it should be a company anymore – which is unlikely to help the brand's case.
- Elon Musk and Twitter will soon be facing off in court if the two aren’t able to reach a settlement agreement first over the $44bn deal – a settlement that, despite the hostility in texts between its CEO the technoking, analysts say is increasingly likely. If it goes to trial, that’ll kick off on October 18, and Twitter shares closed up 13% in September in anticipation.
Doing the stock splitsTesla goes through with its second stock split in as many years on Thursday as the EV leader tries to boost its retail trader base and fuel further gainz.
- One Tesla share is now 3 times cheaper after the electric vehicle brand completed its second ever stock split, which was announced in June as a way to make the $900 stock affordable to a wider investor base – based on Thursday’s close, which was down 0.3%, one share now costs $296.
- It’s good news for Tesla employees too, which was in fact one of the reasons for the split. The brand said they wanted to offer every employee the option of equity, reset the market price, and give employees flexibility in managing their equity. The company has come a long way, first debuting in 2010 at $17.
- Tesla also wants to get in on the retail trading hype – as B. Riley analysts said: "retail investors are a very important cohort for Tesla and today's stock split is an acknowledgment of that fact". Tesla is the sixth company in the S&P 500 including Amazon and Google to split its shares this year to try to broaden their investor base.
Charlie Deets / Unsplash
The Tesla Bot gets overtakenThis weekend, a working humanoid robot prototype made by a tech company walked across the stage and wowed everyone, and no… it wasn’t from Tesla.
- Chinese electronics company Xiaomi has beat Tesla to creating a robot, which can’t feel good for the company or its investors. The robot is nicknamed “Metal Bro” and is eerily similar to the virtual demo we saw of Tesla’s humanoid robot, except this one is real and actually works.
- At least Tesla’s car production is doing well, given that is their actual source of revenue and all. Elon Musk tweeted over the weekend that the EV leader has officially made over three million cars, an exciting milestone after months of lockdowns in China that threatened production plans.
- Speaking of Elon, he’s been busily selling off shares in his EV baby despite it having a fairly bullish month of trading in July – the CEO sold another $6.9bn worth of TSLA last week as he tries to stock up on cash in case he’s forced by the courts to go ahead with his $44bn Twitter buyout.
Elon fills the tank with expectationTesla’s 2022 shareholder meeting brought with it a slew of fun reveals, economic forecasts, and hints at Giga-domination plans.
- Shares in the EV giant dropped 6.63% on Friday to erase its week of gains after Elon Musk and Tesla dropped some news on the market. First up, shareholders have just approved a 3:1 stock split that’ll take place later this month – its last stock split in 2020 kicked off a fairly impressive rally, so investors may be hoping for a repeat despite Friday’s losses.
- Investors also got an update on the production front. The EV leader teased that its next gigafactory build will be in Texas but will confirm later in the year, eventually hoping to boast 12 gigafactory locations with a production capacity of 2m each, and has a goal to produce 20m vehicles annually by 2030.
- The Technoking made an appearance too – despite saying that Tesla would succeed even if he was abducted by aliens – and made a few forecasts on where the economy is headed. Musk speculates that we’ll have a mild 18-month long recession but that inflation has in fact peaked, based on what he sees as declining commodities prices in the next few months.
Tesla touts its potentialIn one of the week’s most highly anticipated earnings reports, Tesla posted a Q2 that was hampered by lockdowns in China – but not as much as people thought.
- Tesla edged up modestly in extended trading on Wednesday after a mixed earnings report. The EV giant handsomely beat on the bottom end with EPS of $2.27 vs the $1.81 expected, missed slightly on the top with revenues that were up 42% to hit $16.93bn, and reported margins that felt pressure from inflation and battery cell competition to fall to 27.9%.
- Chinese lockdown woes were outweighed by its pricing power, which allowed the brand to hike vehicle prices through the year – a relief for investors after Tesla warned of “supply chain hell” – and maintain its 50% production growth target. Elon added that June was the company’s highest production month ever and there’s the potential for a record-breaking H2.
- The brand has largely unwound its divisive Bitcoin holdings. After spending $1.5bn on the crypto last year, execs revealed Tesla has sold 75% of its BTC holdings to add $936m in cash to the books as a way to increase liquidity amid China uncertainty. Musk says it shouldn't be seen as “some verdict on Bitcoin” and Tesla is open to increasing its crypto holdings in future.
Austin Ramsey / Unsplash
Tesla deliveries get stalledTesla is keeping investors on their toes with its latest delivery report and more unwanted legal attention.
- Tesla EV deliveries fell 18% in the second quarter, coming in at 254.6k compared to the 305.4K the company boasted in Q1. The decline has come on the back of a worsening parts shortage, supply chain constraints, and a covid-induced shut down of its Shanghai production facilities. On the upside though, June 2022 was its highest production month ever.
- How are its Chinese competitors doing? Share price wise, its three biggest rivals – Nio, Xpeng and Li Auto – have outperformed Tesla in the second quarter, with Li Auto standing out from the crowd with a 34% gain in Q2 compared to Tesla’s 37% loss. All three reported impressive June deliveries despite similar covid-related headwinds.
- Tesla’s legal team continues to earn its pay. Amid a lay-off related lawsuit and a Dogecoin case, activist investors from SOC Investment have asked the SEC to investigate Tesla over its plans to shrink its board size and close one slot for an independent director, citing concerns over “non-independence on Tesla’s board”.
Andres Jasso / Unsplash
Is Elongate upon us?Elon Musk is getting hit with lawsuits left right and center after a few months (years?) of keeping everyone on their toes.
- Tesla has been stung with another lawsuit. This one comes from two former employees, who claimed in a Sunday filing that the EV maker’s decision to lay off around 10% of Tesla staff required at least 60 days advance notice – which they apparently didn't get.
- Musk’s “super bad feeling about the economy” was at the root of the ~500-person layoff, according to his tweets anyway. Tesla has been hiring rapidly in the last few months despite economic uncertainty swirling, which is one of the reasons employees were surprised by layoffs. But, apparently the situation has become too tenuous, even for Elon.
- It was the second lawsuit of the week for Tesla and its famous/infamous CEO (depends who you ask). A Dogecoin investor, who intends to turn the suit into a class action, sued Elon Musk and his companies – Tesla and SpaceX – for allegedly promoting “worthless” Dogecoin to profit from its trading, asking for $258bn in damages.
Maurizio Pesce / Flickr
The hiring tank is running lowMacroeconomic headwinds continue to slow Tesla’s roll, with Elon scaring both staff and investors with talk of a hiring freeze – and they aren’t the only ones.
- Tesla tanked nearly 10% on Friday to close only $80 away from its 2022 low after Elon Musk sent his staff on a wild ride. The CEO sent out a memo on Friday saying that 10% of Tesla staff were about to get cut amid a hiring freeze, citing his “super bad feeling” about the economy.
- He quickly switched into reverse after seeing the panic, replying to someone in a tweet on Saturday to say that, in fact, the “total headcount will increase” at Tesla but salaries would remain flat. It comes not long after the Technoking sent out a rather perfunctory memo to staff saying that working from home is no longer an option.
- Tesla isn’t the only one stalling on economic concerns. Many tech firms are slowing or completely freezing hiring processes, as well as laying off employees – Meta, among others, has reportedly frozen hiring for the rest of the year, and Coinbase sank nearly 10% on Friday after extending their hiring freeze and rescinding offered jobs. Welp.
Tesla gets testyElon Musk goes on a heated Twitter rampage, lashing out at, like, everyone after Tesla loses its spot on the S&P ESG Index. Awks.
- Tesla has been kicked out of the S&P 500′s ESG index, which tracks companies’ environmental, social and governance impact – or lack thereof. Share prices took a tumble on the news, sinking 6.8% on Wednesday to near a 2022 low.
- The index cited “lack of a low-carbon strategy” – pretty awkward for a company that claims to be doing “the most” for the environment – and “codes of business conduct,” along with racism and poor working conditions at its factories.
- Mr Musk was having absolutely none of it. The billionaire went on a rage-induced tweet-storm in response, calling the corporate ESG “a scam” and saying that an ESG score actually marks how aligned you are with a leftist agenda – he also made it clear he’ll now be voting Republican. Either way, investors didn’t seem pleased with the developments.
Delaware but hereMusk wins a shareholder battle over Tesla’s $2.6bn SolarCity acquisition.
Tesla shareholders reckoned that the SolarCity buy was just a bailout dipped in gold, given Musk sat on both boards at the time, but a Delaware court disagreed and threw out the case. Musk would have had to pay upwards of $2bn – which tbf, isn’t actually that much for Musk.