Here is an outlook on Tesla upcoming earnings.
In relation to my Volkswagen investment probably things like industry outlook, potential market share gains as well as any substantial self driving developments are the most relevant.
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Tesla reported gross margin of 18.2%, lower than analysts expectations of 18.8% while its operating margins declined 5% year-over-year to 9.6%, partly driven by discounts and incentives.
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Industry outlook(demand) seems uncertain.
“In fact, if you look at the rise in credit card debt, they are, in fact, not breaking
even every month. Credit card debt is looking scary. So, we just don’t control the
market conditions. If market condition is stable, I think prices will be stable. If they’re
not stable, then we would have lower prices,” Musk said -
Tesla is willing to sacrifice margins in favor of volume since the cars that they sell will be worth almost 5 times in future what is today- since they have full autonomy capability.
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According to Elon Musk, the economy is uncertain.
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Its VP of Supply Chain, Karn Budhiraj said that they have seen reduction in prices of battery raw materials such as such as nickel, cobalt and graphite.
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