Tesla Bear Asks Elon Musk If Production Capacity Is 'Far In Excess' Of Organic Demand After Rumored Idling Of Giga Berlin
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (TSLA) faces challenges in Germany as the government ends an environmental bonus, impacting electric vehicle subsidies. Tesla's Giga Berlin plant is reported to shut down from Dec. 22 to Jan. 2, 2024, potentially affecting the company's annual production target. In response to the subsidy cut, Tesla offers compensation for new Model 3/Y orders. Analyst Gordon Johnson questions Tesla's demand without government subsidies, implying overcapacity. Tesla's stock dropped slightly following the news.
December 19, 2023 | 9:13 am
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Tesla's Giga Berlin plant shutdown and the end of Germany's environmental bonus could impact Tesla's production targets and demand, potentially affecting revenues and margins.
The shutdown of Tesla's Giga Berlin plant could hinder the company's ability to meet its production goals, while the end of subsidies in Germany might reduce consumer demand for Tesla's vehicles. The company's offer to compensate buyers indicates an attempt to mitigate the impact, but it could also lead to margin erosion. The stock's slight decline reflects investor concerns over these developments.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100