When Tesla (TSLA) posted revenue and earnings that missed consensus estimates, markets did not react in after-hours trade. After CEO Elon Musk warned that the Cybertruck rollout would lose money in the short term, TSLA stock fell.
TSLA broke sharply below the $240-$260 support range after earnings. The firm earned 66 cents a share (non-GAAP). Revenue rose by just 8.9% to $23.35 billion. Capital expenditures increased to $2.46 billion, up from $2.06 billion. The lower cash flow, weaker profit margins, and Truck EV warnings are serious concerns.
Tesla cut the prices of its EVs several times in 2023. It will hurt its competitors more than it hurts itself. This positions the firm to carve market share in the Truck EV space. Still, the CEO said the Cybertruck is a special product that is incredibly difficult to bring to the market.
Investors saw Lucid (LCID), Polestar (PSNY), and Fisker (FSR) struggle under growing losses as output increased. Lucid recently reported lower deliveries, as consumers cut spending on luxury goods.
Consumers cannot afford expensive EVs. Ford (F) is cutting back its Lightning F-150 ambitions. It had counted on spenders to buy the truck. When contractors buy an F-150 gas-powered truck, Ford should have expected weak demand.
Tesla’s struggles will resonate across the EV industry.
