Washington (Reuters) -Tesla said it has built up initial versions of an affordable car on Wednesday, which is probably designed to stop the steep decline in sales that the company has experienced in the markets around the world.
The Elon Musk electric vehicle manufacturer reported the greatest decline in sales for more than a decade and a profit that missed Wall Street’s goals, but the margin of its car profit was better than many were afraid.
Market reaction:
Tesla shares dropped by nearly 5% in trade after hours.
Comments:
Jacob Bourne, Analyzer, Emarketer, New York:
“Tesla’s disappointing results are not surprising given the rocky road that has been traveling recently. But the company maintains a strong foundation in key energy storage growth sectors, robotics and transporting AI. Reading China and fierce competition from Chinese EV manufacturers in this market.
Tesla does not need to choose between cars and future technologies. There are technical synergies between EV, robotaxis, energy systems and robotics that could accelerate innovation on all fronts. The question is whether leadership can fulfill this integrated vision in this fast -moving market. “
Andrew Rocco, Stock Strategist, Zacks Investment Research, Chicago:
“Tesla Delivered Earnings Wednesday Night That Fell Short of Top-and-Bottom Line Exectations slaghtly. Despite the Earnings Miss, Tesla Shares Were Buyed Early by The Fact at the Bleeding in HALT, with Gross Margins Coming in at 17.2% Versus Wall Street Estimates of 16.5%. users.
Entering the report, Wall Street’s expectations were sharp against the backdrop of the delayed EV major business and the reputation damage of Executive Director Elon Musk on both sides of the political path. Nevertheless, Tesla was limping the low band, which was a dramatic profit, missing and making a profit that were better than most were afraid.
In addition, the news fell apart just before the market was closed that Tesla was in “early talks” with Nevada to expand its Robotaxi service. If Tesla can convince investors that it will quickly scathing its Robotaxi service, shareholders will be more forgiving in terms of EV’s main business, as Musk and its team are looking to expand into new verticals, passing and diversifying business. “