Instant Reaction: Tesla Earnings Surpass Expectations
Oct 23, 2024
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Ross Gerber, the savvy President and CEO of Gerber Kawasaki Wealth and Investment Management, dives into Tesla's latest earnings report, showcasing a surprising rebound in demand and profit margins. He analyzes how Elon Musk's political choices might impact Tesla's reputation and business, stirring concern among some customers. Additionally, Gerber discusses the implications of Tesla’s shift towards affordable vehicles and robo-taxis alongside insights on the company's profitability from self-driving tech. It's a mix of finance, politics, and future trends!
Tesla's third-quarter earnings exceeded expectations, showcasing a rebound in EV demand and a slight growth forecast for vehicle deliveries.
Elon Musk's increasing political engagement raises concerns about its potential impact on Tesla's brand perception and long-term innovation.
Deep dives
Negotiation as a Conversation
Negotiation can be redefined as a conversation, a perspective that significantly eases the stress commonly associated with the negotiation process. By shifting the mindset from adversarial confrontation to collaborative discussion, individuals can navigate negotiations more effectively. This approach encourages participants to engage in a dialogue where both parties feel comfortable sharing their needs and concerns, ultimately leading to a more favorable outcome. The emphasis is on building relationships and understanding, rather than simply winning the negotiation.
Tesla's Performance Insights
Tesla has recently reported delivering 1.8 million cars in 2023, demonstrating ongoing growth despite fluctuations in average selling prices and market challenges. A notable improvement in quarter gross margins reflects a reduction in production costs, potentially linked to decreasing battery and lithium prices in the supply chain. Analysts are keen to understand the dynamics behind this margin increase, especially with future plans for affordable vehicle models set to begin production in 2025. The strategic focus remains on effectively managing both production costs and sales demand to sustain long-term growth.
Elon Musk's Political Involvement
Elon Musk’s increasing political engagement, especially his financial support for specific candidates, poses risks to Tesla's reputation and sales. His public alignment with polarizing political figures may alienate a portion of the consumer base, affecting brand perception in an already competitive automotive market. Investors express concern that such political affiliations could detract from Musk's commitment to his role at Tesla and the company's core business operations. The need for focused leadership is emphasized, as distractions from political ventures might hinder Tesla's innovation and growth trajectory.
Tesla surpassed Wall Street estimates for earnings in the third quarter, reflecting a rebound in demand for the company’s electric vehicles.The EV maker also said it expects to achieve slight growth in vehicle deliveries for the full year. For instant reaction and analysis, hosts Tim Stenovec and Katie Greifeld speak with Gerber Kawasaki Wealth Management CEO Ross Gerber and Bloomberg Technology cohost Ed Ludlow.