'Horror Show' For Tesla's Q3 Margins, Says Analyst, As Elon Musk-Led Company Extends Zero-Percent Financing To End Of Q3
Portfolio Pulse from Shanthi Rexaline
Tesla has extended its zero-percent financing option for Chinese buyers of Model Y and Model 3 until the end of Q3. Analyst Gordon Johnson warns this could negatively impact Tesla's Q3 margins, suggesting potential demand issues in China.
August 26, 2024 | 12:10 pm
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Tesla's extension of zero-percent financing in China for Q3 may pressure margins, indicating potential demand issues. Analyst Gordon Johnson views this as a negative for Q3 financials.
The extension of zero-percent financing in China suggests Tesla is trying to boost demand, which may indicate underlying demand issues. This could lead to margin pressure, as seen in Q2, where top-line beat but bottom-line missed expectations. Analyst's negative outlook further supports potential short-term downside.
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