Shares of Tesla took a sharp decline after the company released its earnings report and held its conference call on Wednesday, October 18. The stock dropped over 6% in after-hours trading due to an earnings miss and concerns about the macroeconomic situation, according to CEO Elon Musk. Tesla reported adjusted earnings of 66 cents per share, which fell short of the Street’s expectations of 73 cents per share and represented a 37% decrease from the same period last year. Additionally, the company’s key gross margins decreased to 17.9%, down from last year’s 25.1%. Despite missing its delivery target for the third quarter, Tesla remains committed to its goal of achieving 1.8 million deliveries by the end of the year. However, Musk expressed significant worries about the macroeconomic environment, particularly the impact of rising interest rates on car affordability. He emphasized that high interest rates make it difficult for people to make monthly payments on vehicles, underscoring the importance of selling affordable electric vehicles (EVs). Musk also criticized the work-from-home culture for its lack of understanding and empathy towards those who cannot work remotely, highlighting the need to make Tesla cars more accessible to a wider range of customers. As a result of these factors, Tesla’s shares dropped by 7% in pre-market trading.
#Tesla #EarningsReport #ElonMusk #MacroecnomicConcerns #GrossMargins #DeliveryTarget #InterestRates #CarAffordability #ElectricVehicles #WorkFromHome
Image: https://weeklyfinancenews.online/wp-content/uploads/2023/08/elon2-9-e1692033136365.jpeg
Comments are closed.