Tesla's Q1 earnings show hopes and opportunity despite recession fear
How do you see Tesla's drop operating margin?
The operating margin measures how much profit a company makes on a dollar of sales after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax. It represents how efficiently a company is able to generate profit through its core operations.
The operating margin measures how much profit a company makes on a dollar of sales after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax. It represents how efficiently a company is able to generate profit through its core operations.
Although Tesla's operating margin has dropped, it's still the highest among car industry. It was mentioned before Tesla put sales sales growth ahead of profit. A small drop in profitability due to sales growth is caused by price cut. Price cut is a genius marketing strategy to weed out other EV companies that have negative profit margin (cannot reduce price to compete).
Tesla's price cut is not a desperate Red ocean tactic used to combat decrease in EV demand . In fact Tesla is using Blue ocean + Price cut strategy. Tesla spent much effort to redesign it Gigafactory production to reduce its cost by 50%. There are also many new technology introduced during Tesla's Investor Day to highlight that its EV stand out among others. Tesla's products are not just EV, it includes energy storage which grew 360% YoY and growing when it announced the new Mega pact battery factory in Shanghai.
What's the estimated impact of cybertruck launch in 2023 for Tesla?
The stated goal of developing the Cybertruck is to provide a sustainable energy substitute for the roughly 6,500 fossil-fuel-powered trucks sold per day in US. If launch in Q3 this year, Cybertruck will boost sales and revenue as more are turning to EV. The demand will surge if Cybertruck is qualified for Tax Credit.
In the near future, Tesla will dominate the design of future automakers. FSD (Full Self Driving), humanoid robot Optimus and Tesla X.AI will be the next.
Is 2023 a good time to own Tesla stock or vehicle?
Investing in a stock and and buying a vehicle are 2 different things. If I have a budget, I'll definitely invest in Tesla's stock for long position because it's a company with strong fundamental and visions. If I want to own a car, EV not electric hybrid will be my choice and Tesla's brand is top of my list. Better if staying in US, I can qualify for full USD 7500 tax credit for owning Tesla EV. Having said that owning a vehicle will depend on lifestyle choice and infrastructure.
Bottom line
Tesla's price cut is definitely a boom in long term. Unfortunately in short term market sentiment and recession fear caused Tesla's share price to fall. Many media blame the price cut and splash many baseless negative view about Tesla. To view a company performance and investing potential, it's best to have a balanced view - don't be misguided by fear and greed.
Source:
Tesla Operating Margin #1 In Industry - CleanTechnica
Tesla Revenue Breakdown - FourWeekMBA
$Tesla(TSLA.US$
The stated goal of developing the Cybertruck is to provide a sustainable energy substitute for the roughly 6,500 fossil-fuel-powered trucks sold per day in US. If launch in Q3 this year, Cybertruck will boost sales and revenue as more are turning to EV. The demand will surge if Cybertruck is qualified for Tax Credit.
In the near future, Tesla will dominate the design of future automakers. FSD (Full Self Driving), humanoid robot Optimus and Tesla X.AI will be the next.
Is 2023 a good time to own Tesla stock or vehicle?
Investing in a stock and and buying a vehicle are 2 different things. If I have a budget, I'll definitely invest in Tesla's stock for long position because it's a company with strong fundamental and visions. If I want to own a car, EV not electric hybrid will be my choice and Tesla's brand is top of my list. Better if staying in US, I can qualify for full USD 7500 tax credit for owning Tesla EV. Having said that owning a vehicle will depend on lifestyle choice and infrastructure.
Bottom line
Tesla's price cut is definitely a boom in long term. Unfortunately in short term market sentiment and recession fear caused Tesla's share price to fall. Many media blame the price cut and splash many baseless negative view about Tesla. To view a company performance and investing potential, it's best to have a balanced view - don't be misguided by fear and greed.
Source:
Tesla Operating Margin #1 In Industry - CleanTechnica
Tesla Revenue Breakdown - FourWeekMBA
$Tesla(TSLA.US$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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