Tesla Inc (TSLA)

Tesla Inc (TSLA) stock dipped by 5.59% due to the lay-off announcement, highlighting investor concerns about the company's future performance and the challenges it faces in the competitive electric vehicle (EV) market.

• Lay-off announcement: The company plans to lay off more than 10% of its global workforce. This decision, outlined in an internal memo from CEO Elon Musk, is part of an effort to prepare the company for its next phase of growth by reducing costs and increasing productivity.
• Challenges and Competition: Tesla's stock has faced challenges in recent months, including a 31% year-to-date decrease in its price and increased competition in the EV market. Chinese companies like BYD and Xiaomi have gained traction, posing a threat to Tesla's dominance in the market.
• Executive Departures: In addition to the layoffs, Tesla executives Drew Baglino and Rohan Patel announced their departure from the company. Baglino, who had been with Tesla since its early years, and Patel, who joined Tesla in 2016 after working as a senior advisor to former President Barack Obama, are leaving the company.

Tesla (TSLA) stock plummeted by 4.54% to a 10-month low. The drop was attributed to bearish sentiment, with analyst Dan Ives acknowledging the current "piling on" by bears. Despite this, Ives maintains a long-term bullish stance on the electric vehicle (EV) giant, believing that the current sentiment presents a prime buying opportunity for investors.

• Ives' Bullish Outlook: Ives predicts that in six to nine months, the current downturn will be viewed as a golden buying opportunity for Tesla over the next two to three years, especially with advancements in AI. He emphasized that while current sentiment may be bearish, the long-term outlook for Tesla remains strong.
• Wells Fargo Downgrade: The decline in Tesla's stock was also influenced by a downgrade from Wells Fargo, which downgraded the company from Equal Weight to Underweight. The downgrade cited concerns over disappointing deliveries, potential negative earnings revisions, and a loss of luxury brand premium following price cuts.
• Potential of Tesla's AI and FSD Technology: Despite these challenges, Ives has previously highlighted the potential of Tesla's AI and Full Self-Driving (FSD) technology to drive the company's market capitalization to over $1 trillion. He believes that the risk/reward at current levels is "extremely compelling", emphasizing that "now is NOT the time to throw in the towel" on Tesla.

Tesla Inc. (TSLA) stock dipped by 7.16%, marking its lowest close since February 13th. This drop came amidst reports of slowing shipments from its Giga Shanghai factory in China. Preliminary data from China's Passenger Car Association revealed that Tesla shipped 60,365 vehicles in February, a 16% drop from the previous month and a 19% drop from the previous year. This figure represents the lowest shipment total since December 2022.

• Challenges in the Chinese Market: The decline in shipments from China is particularly concerning for Tesla, as the country is viewed as a key growth market for the company. Even China's BYD, which surpassed Tesla in overall EV sales in Q4, experienced a significant drop in sales in February. This slowdown in demand has led to a price war among automakers in China, including Tesla.
• Tesla's Response: Price Cuts and Incentives: In response to the challenging market conditions in China, Tesla has implemented new incentives to stimulate sales. These incentives include a $4.8K price cut for customers who purchase Model 3 and Model Y vehicles from existing inventories by the end of March. Tesla had previously reduced prices for the Model 3 and Model Y in January.
• Competition in the EV Market: The competition in China's EV market is fierce, with Tesla facing pressure from both domestic and international competitors.

Tesla Inc. (TSLA) stock crashed by 12.13% due to its fourth-quarter results that signaled broader challenges faced by the electric vehicle (EV) market. Despite this setback, it's crucial for investors to consider the bigger picture before making decisions about their investments.

• Tesla's Q4 Earnings Impact: The decline in Tesla's stock price followed the release of its fourth-quarter earnings results, with the electric vehicle company's shares ending the daily session down by 12.1%, as per data from S&P Global Market Intelligence. The Q4 report contained concerning results for Tesla's shareholders, reporting non-GAAP (adjusted) earnings of $0.71 per share on revenue of $25.17 billion. These figures fell short of the average analyst estimate, which had anticipated adjusted earnings of $0.74 per share on sales of approximately $25.76 billion.
• Slowing Growth Signals Market Shift: In the fourth quarter, Tesla's revenue grew by approximately 3.5% year over year, which significantly lagged behind market expectations. This performance indicates a notable shift in the EV market dynamics. Although free cash flow (FCF) experienced a year-over-year growth of around 45%, reaching approximately $2.06 billion in the period, sustaining such robust FCF growth may prove challenging without a revitalized sales momentum. Tesla had previously reported around 9% year-over-year sales growth in Q3 of the prior year, which was already seen as somewhat disappointing. The Q4 results of the EV specialist reflect broader headwinds that are affecting the entire electric vehicle industry. While the demand for EVs appears to be weakening, there is still hope for Tesla. The company has initiated substantial price cuts to stimulate vehicle sales, potentially exerting pressure on its competitors.
• Furture Prospects for Tesla: Over the long term, Tesla remains poised for strong performance. The company stands out as a dominant leader in the EV sector, equipped with various avenues for success. Despite recent challenges, Tesla continues to maintain profit margins that surpass those of most other players in the automotive industry. Additionally, Tesla's pioneering efforts in the robotaxi space could lead to robust sales and earnings growth if they prove successful. It's essential for investors to acknowledge that Tesla's fourth-quarter results are indicative of industrywide headwinds. While short-term performance may be under pressure, the company still holds significant long-term growth potential. Therefore, investors should approach Tesla's stock with a balanced perspective, recognizing both the near-term challenges and the enduring opportunities.

Shares of Tesla (TSLA) dropped by 5.46% from $222.11 to $209.98 in the trading on Thursday, Novemeber 9, 2023. The reasons why TSLA down include:

• Bearish Sentiment: Tesla, along with other electric vehicle (EV) stocks like Rivian Automotive (RIVN) and Lucid Motors (LCID), faced a bearish market sentiment.
• Tepid Earnings: Analysts and investors were disappointed with the earnings results of EV companies, leading to concerns about their future growth.
• Higher Interest Rates: Rising interest rates negatively impacted EV stocks, affecting their valuations and consumer affordability.
• Valuation Worries: Tesla, in particular, has an exceptionally high valuation compared to traditional auto companies. HSBC analyst Michael Tyndall initiated coverage on Tesla with a reduce rating and a $146 price target, significantly lower than its market price at the time. Tyndall's criticism focused on Tesla's valuation, especially its reliance on innovations in autonomy and robotics, which might not yield significant revenue and profits until the end of the decade. He emphasized that assigning a value to these areas is challenging due to regulatory, technological, and competition risks.
• Brand Risk: Tesla's CEO, Elon Musk's controversial comments and ventures outside of Tesla added to the company's brand risk.

Shares of Tesla (TSLA) dropped by 4.79% from $207.30 to $197.36 in the trading on Monday, October 30, 2023. The reason why TSLA stock down is due to concerns regarding electric vehicle (EV) demand:

• EV Demand Uncertainty: Despite Tesla's historic high market capitalization valuation, there were worries about sustained EV demand, as it is crucial for the company's growth.
• Panasonic's Battery Production Cut: Panasonic, a significant Tesla supplier, reduced its automotive battery production due to a global slowdown in EV demand, leading to a 15% decrease in annual profit guidance.
• Tax Credits and Interest Rates Impact: Exclusion of high-end EVs from tax credits and concerns about the affordability of EVs due to higher interest rates added to the uncertainty. These concerns, along with a cautious outlook from other automakers on EV sales, contributed to Tesla's stock decline of approximately 25% over the past three months. Some investors saw this as an opportunity to potentially invest in Tesla at a lower price point, considering its long-term potential.

Shares of Tesla, Inc. (TSLA) dropped by 9.30% from $242.68 to $220.11 in the trading on Thursday, October 19, 2023. The reasons why TSLA stock down include its disappointing Q3 earnings and disastrous Elon Musk's conference call:

• While Tesla's Q3 financial results initially missed expectations, the stock remained relatively stable following the release, likely due to anticipation surrounding the Cybertruck delivery event.
• However, the situation took a turn for the worse during the subsequent conference call with Tesla's management. Several pieces of information from the call likely contributed to the stock's sharp decline. Elon Musk's remarks about "tempering expectations" regarding the Cybertruck and Tesla's decision to slow down on Gigafactory Mexico projects were among the key factors. Additionally, the overall tone and mood of the conference call may have played a significant role in the current sell-off, as investor sentiment can be greatly influenced by the communication and outlook provided by company leadership during such events.

Shares of Tesla, Inc. (TSLA) dropped by 4.78% from $254.85 to $242.68 in the trading on Wednesday, October 18, 2023. The reason why TSLA stock down is due to its disappointing Q3 earnings

• Earnings Miss: Tesla reported quarterly earnings of $0.66 per share, falling short of the Zacks Consensus Estimate of $0.72 per share. This marked a decrease from earnings of $1.05 per share in the same period the previous year. The earnings miss could have negatively impacted investor sentiment.
• Revenue Miss: Tesla's Q3 revenues came in at $23.35 billion, missing the Zacks Consensus Estimate by 4.23%. While this figure was higher than the previous year's revenue of $21.45 billion, the revenue miss may have disappointed investors.
• Consistent Misses: Over the last four quarters, Tesla has missed consensus EPS estimates three times, potentially eroding investor confidence in the company's ability to meet expectations.

Shares of Tesla, Inc (TSLA) dropped by 1.57% from $262.99 to $258.87 in the trading on Thursday, October 12, 2023. The reason why TSLA stock down include:

• Higher-than-expected CPI: On October 12, a report revealed that September's Consumer Price Index (CPI) inflation came in at 3.7%, surpassing expectations of 3.6%. Core CPI inflation stood at 4.1%, in line with expectations. This higher inflation raised concerns among investors about a potential interest rate hike by the Federal Reserve, leading to a broader decline in the stock market, including TSLA stock.
• Middle East war: The conflict between Israel and the Palestinian militant group Hamas in the Middle East contributed to an increase in oil prices. Rising oil prices can negatively impact electric vehicle (EV) stocks like TSLA, as they may face higher production and operating costs, which can weigh on their profitability and stock prices.

Tesla shares were down 9.74% after its Q2 earnings call disappointed investors. Tesla's revenue per vehicle (excluding credits) has fallen by 20.4% to $45,626 in the past year, while the margin per vehicle has dropped by 44.3%. Price cuts aimed at stimulating demand may pose challenges for other manufacturers.

https://finance.yahoo.com/news/tesla-stock-is-worth-only-85-after-gross-margin-whiff-analyst-says-wall-street-reacts-085541588.html

Shares of Tesla (TSLA) fell on Monday, declining 6.06% today as traders appeared to rotate out of large-cap tech stock that has already gained an impressive amount this year. On Sunday, a Goldman Sachs analyst released a not to his client downgrading his rating on Tesla from buy to neutral. Tesla remains a highly volatile and contenious stock, prone to big jumps higher and creashes lower.

https://www.nasdaq.com/articles/why-tesla-stock-fell-today-0