Connect with us

News

Tesla’s financial report preview: sales slowed in the fourth quarter, profit margins narrowed_China IT News

Published

on

On the morning of January 25th, Beijing time, according to reports, Tesla may post its slowest sales growth in 10 months on Wednesday due to poor deliveries. It came just days after the company lowered the prices of its products to boost demand and thwart rivals.

Tesla’s profit margins could take a hit as it faces competition from traditional automakers such as Ford and upstarts such as Rivian and Lucid.

research has shown,Analysts on average expect Tesla’s net profit growth to be the slowest in three years in the latest quarter.

“I’m interested to see how those two metrics (production costs and product selling prices) cancel each other out in the fourth quarter, because that’s going to be our forecast for 2023,” said Morningstar analyst Seth Goldstein. A good directional indicator of

Tesla has been ramping up capacity at its two Gigafactories in Berlin and Austin, which analysts believe will help lower production costs and offset some of the hit the company has suffered from price cuts.

Tesla has offered steep discounts on the company’s vehicles in recent months, cutting prices globally by as much as 20 percent earlier this month.

Tesla’s Model 3 compact sedan and Model Y compact SUV are priced in line with Fisker’s Ocean SUV, but well below Rivian’s R1T pickup and R1S SUV.

There are some early signs that Tesla’s price cuts are starting to work, as Xpeng and Celes have adjusted the prices of their electric vehicles as a result, and data show a surge in sales in China.

YipitData data shows that after Tesla cut prices, the company’s car orders in the United States also increased.

Fundamentals

Tesla will announce its latest quarterly earnings on January 25. Analysts on average expect Tesla’s fourth-quarter revenue to rise 36 percent to $24.03 billion and profit of $1.13 a share, according to a Refinitiv survey.

According to Visible Alpha, Tesla’s auto gross margin likely fell to 28% in the fourth quarter, compared with 30.6% a year ago. The metric is expected to drop to 25% this year from 29% in 2022.

Wall Street Ratings

Of the 42 analysts who cover Tesla, 25 have a “buy” rating or higher on the stock, 12 have a “hold” rating and five have a “sell” rating or lower.

Analysts have a median price target of $186 for Tesla. The stock has more than halved over the past 12 months, closing at $143.89 on Tuesday.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending