Is it time to sell Tesla stock after disappointing Q3 report?
The post Is it time to sell Tesla stock after disappointing Q3 report? appeared on BitcoinEthereumNews.com. In the wake of Tesla‘s (NASDAQ: TSLA) underwhelming Q3 report, shares of the electric vehicle giant are poised to open lower on Thursday, October 19. The report revealed a significant dip in profit margins and delivered a profitability outlook for the highly anticipated Cybertruck that fell short of expectations. As a result, the stock is already down nearly 5% in premarket trading, underscoring the swift exodus of investors in response to the disappointing results. TSLA down in premarket. Source: Nasdaq While this initial reaction is natural, investors now face a broader question: should they maintain their faith in the world’s largest auto company, or is it time to reconsider their positions? The first ‘red flag’ at Tesla that many investors and analysts are currently debating is the electric vehicle (EV) maker’s weakened fundamentals. In its Q3 report, the company reported adjusted earnings per share (EPS) of 66 cents, missing the consensus estimates of 73 cents. The non-adjusted net income for the quarter stood at $1.85 billion, while the total profit plummeted roughly 22% year-over-year. Revenue came in at $23.35 billion, while the analysts were projecting $24.1 billion. This was the first time Tesla missed both EPS and revenue estimates since Q2 2019. Tesla quarterly revenues by segment. Source: CNBC Another vital profitability metric, operating margin, stood at 7.6%, significantly down from the 17.2% reported in the same quarter last year. The sharp drop in profits can be largely attributed to Tesla’s significant price-cutting campaign this year. The carmaker reduced the prices of its US and China-made cars several times this year, sacrificing profitability in favor of making more vehicles, hoping their value will surge drastically once Tesla fully releases its autonomous driving solution. Musk pessimistic about economy, delivers downbeat Cybertruck profitability outlook In addition to poor Q3 results, Tesla and…
The post Is it time to sell Tesla stock after disappointing Q3 report? appeared on BitcoinEthereumNews.com.
In the wake of Tesla‘s (NASDAQ: TSLA) underwhelming Q3 report, shares of the electric vehicle giant are poised to open lower on Thursday, October 19. The report revealed a significant dip in profit margins and delivered a profitability outlook for the highly anticipated Cybertruck that fell short of expectations. As a result, the stock is already down nearly 5% in premarket trading, underscoring the swift exodus of investors in response to the disappointing results. TSLA down in premarket. Source: Nasdaq While this initial reaction is natural, investors now face a broader question: should they maintain their faith in the world’s largest auto company, or is it time to reconsider their positions? The first ‘red flag’ at Tesla that many investors and analysts are currently debating is the electric vehicle (EV) maker’s weakened fundamentals. In its Q3 report, the company reported adjusted earnings per share (EPS) of 66 cents, missing the consensus estimates of 73 cents. The non-adjusted net income for the quarter stood at $1.85 billion, while the total profit plummeted roughly 22% year-over-year. Revenue came in at $23.35 billion, while the analysts were projecting $24.1 billion. This was the first time Tesla missed both EPS and revenue estimates since Q2 2019. Tesla quarterly revenues by segment. Source: CNBC Another vital profitability metric, operating margin, stood at 7.6%, significantly down from the 17.2% reported in the same quarter last year. The sharp drop in profits can be largely attributed to Tesla’s significant price-cutting campaign this year. The carmaker reduced the prices of its US and China-made cars several times this year, sacrificing profitability in favor of making more vehicles, hoping their value will surge drastically once Tesla fully releases its autonomous driving solution. Musk pessimistic about economy, delivers downbeat Cybertruck profitability outlook In addition to poor Q3 results, Tesla and…
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