Bloomberg Intelligence
Instant Reaction: Tesla Earnings Surpass Expectations
Oct 23, 2024
In this discussion, industry expert Ross Gerber, CEO of Gerber Kawasaki, and Bloomberg Technology cohost Ed Ludlow delve into Tesla's impressive earnings beyond Wall Street expectations. They analyze the rebound in demand for electric vehicles and the company's projected growth in vehicle deliveries. The conversation also highlights the impact of declining production costs, the need for focused leadership amid political distractions, and the implications of new product strategies on Tesla's market standing. Expect engaging insights about the future of the EV giant!
12:55
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Quick takeaways
- Tesla's earnings exceeded expectations primarily due to reduced costs and improved margins despite declining average selling prices for vehicles.
- Elon Musk's political involvement raises concerns about potential impacts on Tesla's brand image and operational focus amid growing competition.
Deep dives
Tesla's Strong Earnings Performance
Tesla delivered 1.8 million cars in 2023, which was a significant achievement, although average selling prices experienced a decline. However, the company's automotive gross margin exceeded estimates, largely due to decreased costs associated with goods sold and evolving supply chain dynamics. This improvement suggests that reduced battery demand and lower lithium prices are benefiting Tesla’s margins, allowing for more profitability. The ongoing plans for launching more affordable vehicle models highlight the company's strategy to attract a broader customer base while navigating potential challenges with product cannibalization.
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