Bloomberg Surveillance
Instant Reaction: Tesla Earnings Surpass Expectations
Oct 23, 2024
In this discussion, Ross Gerber, CEO of Gerber Kawasaki Wealth Management, offers his insights on Tesla's impressive earnings, which surpassed Wall Street expectations. He highlights the rebound in demand for electric vehicles and forecasts slight growth in vehicle deliveries. The conversation dives into the implications of Elon Musk’s political engagement, questioning how it could affect Tesla's performance amid increasing competition. They also touch upon the significance of full self-driving software in driving profits and the anticipated dynamics of upcoming earnings calls.
12:55
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Quick takeaways
- Tesla's third-quarter earnings surpassed Wall Street estimates, highlighting a rebound in demand and improved automotive gross margins.
- The company's strategy to introduce more affordable vehicle models raises concerns about potential impacts on higher-end sales amidst competitive pressures.
Deep dives
Tesla's Earnings and Margin Insights
Tesla's recent earnings report showed that the company delivered 1.8 million cars in 2023, accompanied by a notable increase in the automotive gross margin, which was reported at 17.1%, exceeding estimates. This improvement in margins may suggest a significant decrease in costs related to goods sold, possibly due to the recent declines in battery demand and lithium prices. However, the specific reasons behind the margin gains remain somewhat opaque, as detailed data from the company is anticipated. The focus on maintaining and increasing profitability, especially amidst competitive pressures, is critical for Tesla moving forward.
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