TESLA ($TSLA) – PRICE CUTS, NEW MODELS & SHRINKING MARGINS

TESLA (TSLA) – PRICE CUTS, NEW MODELS & SHRINKING MARGINS

(1/8)
Tesla’s Q4 2024 revenue came in at 25.17B (+1% YoY), missing estimates of 25.87B. Full-year revenue hit 97.69B, only slightly above 2023. Let’s break down the numbers! 🚗⚡️

(2/8) – EARNINGS SNAPSHOT

• Q4 non-GAAP EPS: $0.71 (vs. $0.74 est.)
• Net income slipped from 2.51B (Q1 ‘23) to 1.13B (Q1 ‘24) → margin pressures
• Full-year EPS: $2.04. Investors are edgy over slowing profit growth 😬

(3/8) – NEW AFFORDABLE EV

• Tesla plans to launch a lower-priced EV mid-2025—could spark future growth 🚀
• However, concerns linger about declining margins due to recent price cuts & softening EV demand 🔻

(4/8) – SECTOR SNAPSHOT

• P/E trailing: 177.26, forward P/E: 124.35 → major premium vs. Toyota (~8.5) & GM (~8.7) 🔎
• EV/EBITDA: 87.53—again, quite high
• Analyst avg. PT: $307.62 vs. current ~$355 → Some see overvaluation 📈

(5/8) – PERFORMANCE & COMPETITION

• Tesla’s revenue growth lags behind EV rivals like BYD (especially in China) 🇨🇳
• High valuation is tough to justify if margins keep slipping & demand cools
• Others note the potential for a “market correction” if Tesla doesn’t re-accelerate growth 🔻

(6/8) – RISK FACTORS

• EV Demand Slowdown: Price cuts & fierce competition in China
• Production Delays: Cybertruck & new affordable EV might take time to ramp
• Regulatory: Shifts in incentives or rules could slow sales 📉
• Economic Pressure: High interest rates = less consumer cash for big-ticket items
• Elon Musk: Diverted focus (X, SpaceX) + polarizing behavior 🌀

(7/8) – SWOT HIGHLIGHTS

Strengths:
Leading EV brand & loyal customer base 🔥
Diversified streams (storage, solar) → less auto reliance
Massive market cap at 1.16T shows confidence

Weaknesses:
Shrinking margins (~17.86% in 2024)
Production hiccups → scaling issues
Sky-high valuations vulnerable to correction

Opportunities:
2025 mass-market EV could open huge demand 🚗💨
AI & autonomy (FSD, robotaxis) for new revenue
Energy storage growth offsetting auto slowdowns 🔋

Threats:
Competition from BYD, GM, etc.
Lawsuits & regulatory scrutiny (discrimination, product defects)
Global economic uncertainty → lower vehicle sales

(8/8) – With Tesla trading around $355 & a P/E near 177, is it still worth the premium?

1️⃣ Bullish—Musk’s vision & new EV model = unstoppable 🚀
2️⃣ Neutral—Waiting to see if margins recover 🤔
3️⃣ Bearish—Overvalued, competition is heating up 🐻

Vote below! 🗳️👇