Shulou(Shulou.com)11/24 Report--

According to CTOnews.com news on October 18, Tesla had a strong performance in the first half of this year, but the stock price has fallen back recently. Tesla is still up just over 100% so far this year, but investors are anxiously waiting for the company's third-quarter results to be released after u.s. stocks opened on Wednesday.

Adam Adam Jonas, an analyst at Morgan Stanley, said that as earnings day approached, many investors were not optimistic about Tesla's performance this quarter.

Mr Jonas wrote in a report after lunching with several prominent Tesla investors last week that investors were "cautious" ahead of the results. Investors are not interested in Dojo and Tesla's autopilot programs because they are unpredictable and Musk's promises in this regard have not been fulfilled, he said.

CTOnews.com noted that investors were also nervous about the upcoming Cybertruck, and Jonas said that if full production and large-scale delivery of the new model were delayed again, it could cause Tesla to make another round of price cuts, which is also one of the reasons for the negative sentiment in Tesla's share price.

Last year, prices for Tesla's Model 3 started at $48000. Now, the same model can be bought for less than $40000.

"China's price war is a high-risk poker game for Tesla because the volume-for-price strategy has helped Tesla gain market share so far," said Dan Ives, an analyst at Wedbush, but added that "this trend cannot continue in 2024."

Ives pointed out that the price war and gross profit margin will be Tesla's "focus" after the financial report.

Jonas expects Tesla's gross profit margin to fall from 19% in the first quarter and 24.3% in December 2022 to 17.5% in the current quarter as a result of price cuts. Colin Langan, an analyst at Wells Fargo, predicts that assuming the price cut continues into the fourth quarter, the company's gross margin could fall below 15 per cent.

Gene Munster, a partner at Deepwater Management, said last week that the lower gross margins would bring Tesla closer to the gross margins of his carmaker counterparts and widen the gap with those of large technology companies.

Tesla delivered 435000 cars in the third quarter, below market expectations of 455000. The company said it was still on track to sell 1.8 million vehicles this year.

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