{"id":74643,"date":"2023-10-19T23:32:42","date_gmt":"2023-10-20T03:32:42","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/tesla-stock-falls-after-weak-earnings-what-wall-street-says\/"},"modified":"2023-10-19T23:32:45","modified_gmt":"2023-10-20T03:32:45","slug":"tesla-stock-falls-after-weak-earnings-what-wall-street-says","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=74643","title":{"rendered":"Tesla Stock Falls After Weak Earnings. What Wall Street Says."},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000774017\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<p>        <!-- eventually when we know what this card will be we can change it and leave this one --><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>\n        Tesla<br \/>\n       stock dropped after weak earnings and downbeat comments from CEO Elon Musk. Wall Street wasn\u2019t feeling very bullish after the report. <\/p>\n<p>Tesla (ticker: TSLA) on Wednesday reported adjusted earnings per share of 66 cents and automotive gross profit margins, excluding regulatory credit sales, of 16.3%. Wall Street was looking for profit of 70 cents and margins of about 17.5%. Operating profit margins came in at 7.6%, down almost 10 percentage points year over year. <\/p>\n<div class=\"paywall\">\n<p>Price cuts were responsible for the decline in profitability. The economy is simply making it harder to sell cars, something Musk mentioned several times on the earnings conference call. <\/p>\n<p>\u201cI am worried about the high-interest-rate environment that we are in,\u201d he said. \u201cI can\u2019t emphasize this enough\u2026the vast majority of people buying a car is about the monthly payment.\u201d<\/p>\n<p>Tesla stock fell 9.3% to $220.11 a share, while the<br \/>\n        S&amp;P 500<br \/>\n       dropped 0.9% and the<br \/>\n        Nasdaq Composite<br \/>\n       was down 1%.  <\/p>\n<p>After earnings, Tesla shares weren\u2019t getting much help from analysts. <\/p>\n<p>\u201cNo more rose-colored glasses,\u201d wrote Wells Fargo analyst Colin Langan in a research report, adding the outlook for volume growth is unclear and profit margin pressures continue. \u201cNot only was the Cybertruck ramp tempered, but Tesla is waiting on macro [economic improvement] before going full tilt on the Mexico plant,\u201d he added. Tesla is building its next assembly plant in Mexico. <\/p>\n<p>Langan cut his price target to $250 from $260 a share and maintained his Hold rating on the stock. <\/p>\n<p>Citi analyst Itay Michaeli rates shares Hold as well. He cut his price target to $255 from $271.<\/p>\n<p>\u201cA somewhat worse outcome versus our previewed\u00a0neutral-to-slightly negative\u00a0setup,\u201d is how Michaeli characterized the quarter in a note Thursday. \u201cThe tone on the [conference] call was noticeably more cautious\u2026tactically, we prefer staying on the sidelines pending a more convincing entry point with visible near-term fundamental catalysts.\u201d <\/p>\n<p>Wedbush analyst Dan Ives also noticed the downbeat tone of the call, referring to it a \u201cmini-disaster\u201d in a report. Ives rates shares Buy but cut his target price to $310 a share from $350. <\/p>\n<p>\u201cThe Street wanted to get their arms around the falling margins and constant price cuts seen globally, but instead we heard from a much more cautious Musk,\u201d he wrote.<\/p>\n<p>RBC analyst Tom Narayan, who also rates share Buy, had a more bullish take on the quarter. He did, however, cut his target price to $301 a share from $305. <\/p>\n<p>\u201cInvestors [are] missing the forest for the trees,\u201d he wrote in a report Thursday. He has an interesting idea that he believes people might be missing. <\/p>\n<p>\u201cInvestors will likely focus their attention on the cautious commentary on 2024 and on the potential delay of the next generation product,\u201d he wrote. \u201cBut we suspect this could be all part of a master pivot from being a volume car maker to becoming a Tier 1 supplier to [auto makers].\u201d <\/p>\n<p>Narayan believes Tesla will eventually morph into a supplier of power electronics, batteries, charging, and driver-assistance software. But for now, investors are focused on the car business. <\/p>\n<p>Overall, 40% of analysts covering the stock rate share Buy. The average Buy-rating ratio for stocks in the S&amp;P 500 is about 55%. The average analyst price target is about $246 a share, down about $14 a share from just before earnings were reported. <\/p>\n<p>Write to Al Root at\u00a0allen.root@dowjones.com<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/tesla-stock-price-analysis-earnings-call-9d406b67?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tesla stock dropped after weak earnings and downbeat comments from CEO Elon Musk. Wall Street wasn\u2019t feeling very bullish after the report. Tesla (ticker: TSLA) on Wednesday reported adjusted earnings per share of 66 cents and automotive gross profit margins, excluding regulatory credit sales, of 16.3%. Wall Street was looking for profit of 70 cents [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":74644,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-74643","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tesla Stock Falls After Weak Earnings. What Wall Street Says. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Tesla stock dropped after weak earnings and downbeat comments from CEO Elon Musk. Wall Street wasn\u2019t feeling very bullish after the report. 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