TSLA
📉 Despite reporting its worst quarterly results in years with falling margins, Tesla’s stock surged over 6%.
🗣️ Elon Musk promised to dedicate significantly more time to Tesla and reduce his government work, easing investor concerns about leadership focus.
🚗 Musk confirmed plans to start production of lower-cost vehicles in the first half of the year (May/June), boosting future outlook.
@bernardodegarcia:
“Let’s quickly look at Tesla shares because despite having their worst quarterly results in several years, with margins falling, well, as we’re seeing, the shares are rising. What gives? What’s happening? Well, it turns out Elon Musk, as we commented just before the quarterly results, likely ended up announcing something along these lines, and he did. He promised to significantly reduce his work with the U.S. government and focus more on Tesla, thus appeasing investor concerns about the automaker’s worst quarter in years. The CEO will dedicate much more time to Tesla starting next month, during an earnings presentation yesterday. Here we have the price target cuts from 330, from 388 to 330. Well, never mind. It turns out Musk stated that his work to establish the so-called government efficiency department will be practically concluded. Investors and analysts have increasingly asked Musk to refocus on the struggling electric car company, weighed down by falling sales and rising costs stemming from President Trump’s trade war. In recent months, consumer protests against Musk’s government work have emerged. ‘At Tesla, we’ve gone through many crises over the years,’ declared Musk. ‘This is not one of its moments. We are not on the verge of death, not even close.’ Tesla shares rose more than 7% in early trading today, and now we have it hovering around 6.45%. Despite, as we said, the first-quarter results highlighting the weakness of the company’s core automotive business and tariff difficulties for the expansion of its energy operations. The automaker missed analyst estimates for both revenue and profit, and management retracted previous predictions that vehicle sales would return to growth this year. However, on the other hand, we had two things we were looking for. One, the promise that we will start production of low-cost vehicles, low-cost for customers, this first half of the year, meaning May, June, we start now. Let’s go. And then, on the other hand, as we mentioned, Elon Musk will no longer be working so directly in D.C. We’ll see what happens.”
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