Tesla Stock Down After Q3 Earnings, Gene Munster Says 'Dark Chapter' For EV Company Could Last A Year
Portfolio Pulse from Chris Katje
Tesla Inc's (NASDAQ:TSLA) Q3 financial results fell below analysts' estimates, leading to a drop in share prices. Despite potential future catalysts, Gene Munster, co-founder and Managing Partner at Deepwater Asset Manager, predicts a challenging year ahead for Tesla due to prolonged margin pressure and a dampened demand outlook. The company's gross margins were significantly lower than expected, and the potential for margin improvement over the next year was dismissed. However, Tesla's Cybertruck, set to begin deliveries in November, and the company's advantage in building an electric-focused car company from the ground up, are seen as positive factors.
October 20, 2023 | 8:36 pm
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NEGATIVE IMPACT
Ford Motor Co (NYSE:F) could potentially lose market share to Tesla's upcoming Cybertruck. Gene Munster predicts that the Cybertruck could become the best-selling truck in the U.S. by 2025 or 2026, taking orders away from Ford's F-Series.
Ford's F-Series has been the bestselling truck in the U.S. for decades. However, Gene Munster predicts that Tesla's upcoming Cybertruck could take orders away from the F-Series and become the best-selling truck in the U.S. by 2025 or 2026. This could potentially lead to a loss of market share for Ford.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 70
NEGATIVE IMPACT
Tesla's Q3 financial results were below expectations, leading to a drop in share prices. The company's gross margins were significantly lower than expected, and the potential for margin improvement over the next year was dismissed. However, the upcoming Cybertruck deliveries and Tesla's advantage in building an electric-focused car company from the ground up are seen as positive factors.
Tesla's Q3 financial results were below analysts' expectations, which led to a drop in share prices. The company's gross margins were significantly lower than expected, which is a key factor in Tesla's investment case. The potential for margin improvement over the next year was dismissed, which could further impact the company's financial performance. However, the upcoming Cybertruck deliveries and Tesla's advantage in building an electric-focused car company from the ground up are seen as positive factors that could potentially offset some of the negative impacts.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100