Josh Gilbert, market analyst at eToro, emphasizes that the company “has failed in most key indicators” since “profits, revenues and gross margins were insufficient in the fourth quarter.” However, the accounts had a positive note, which were the automotive gross margins. Despite this data, “long-term investors still have many catalysts to be optimistic with falling battery costs, the outlook for long-term electric vehicle demand trends, Tesla's artificial intelligence investments and the evolution of its solar business,” Gilbert concludes.
Tesla has failed on most key indicators. Profits, revenue and gross margins were weak in the fourth quarter, and the warning that sales could be noticeably lower this year won't help investor sentiment.
These results follow a poor start to the year, in which Tesla shares have fallen more than 15%, making it one of the worst-performing companies in the S&P500 in 2024, amid concerns about the decline of the demand for electric vehicles. Tesla shares can be expected to decline in the coming days, with $194 a key level for investors to watch, its fourth-quarter low. A break below that level could put further downward pressure on the retail investor favorite, especially after losing its EV crown to BYD earlier this year.
The positive note was the automotive gross margins, which rose from 16.3% last quarter to 17.2%. Investors will be watching how margins hold up this year, with Tesla about to unveil its new "discounted" model. However, long-term investors still have plenty of catalysts to be bullish with falling battery costs, the outlook for long-term electric vehicle demand trends, Tesla's AI investments and evolving of your solar business.
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Source: Territorioblockchain.com
