Tesla's '50% Growth Mirage' Over, Says Bearish Analyst On Key Data Showing 'Underwhelming' Demand For Cybertruck, Refreshed Model 3
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) reported disappointing Q3 results, with a lower-than-expected core margin of 16.3% and an operating margin drop of 2 percentage points. Analyst Gordon Johnson of GLJ Research reiterated his bearish view on the stock, citing underwhelming demand for the Cybertruck and refreshed Model 3. He also noted that Tesla's growing cash balance was mainly driven by a $2.1 billion increase in debt. Following the news, Tesla's stock fell 5.07% in premarket trading.
October 19, 2023 | 10:45 am
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NEGATIVE IMPACT
Tesla's disappointing Q3 results and underwhelming demand for its new models could negatively impact its stock price in the short term.
The lower-than-expected Q3 results and the underwhelming demand for the Cybertruck and refreshed Model 3 are negative indicators for Tesla's financial performance. This, coupled with the increase in debt, could lead to a decrease in investor confidence and a potential drop in the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100