Bearish Analyst Takes A Swipe At Tesla As EV Maker Offers Discounts On Inventory Vehicles In Most Geographies: 'There's Infinite demand..., Right'
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) is reportedly offering discounts on inventory vehicles in various European countries and the U.S., which could continue to pressure margins. GLJ Research's Gordon Johnson, a bearish analyst, highlighted these discounts and sarcastically questioned the 'infinite demand' for Tesla's cars. In contrast, Future Fund's Gary Black downplayed the significance of inventory discounts, stating they only affect models for that quarter, unlike configurator discounts which are factored into analyst models indefinitely.
November 16, 2023 | 10:14 am
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NEGATIVE IMPACT
Tesla's recent discounts on inventory vehicles across several geographies could potentially erode margins and affect investor sentiment. While some analysts view this as a negative sign, others consider it a temporary measure that won't have a long-term impact on valuation.
The discounts on Tesla's inventory vehicles are likely to impact the short-term stock price negatively due to concerns over margin pressure. However, the impact may be mitigated by the perception that these discounts are a temporary measure, as suggested by Gary Black.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100