Tesla: How is the CEO of Tesla working? Tesla’s earnings and profitability struggle in the third quarter, after Musk announced a robot prototyping plan
The electric carmaker said it made $3.3 billion in the third quarter, up from $1.6 billion in the same period a year earlier and nearly matching the record profit it reported in the first three months of the year. The revenue was $21.5 billion, up from $1 3.8 billion.
In its third quarter, it sold 20,000 fewer cars than it did in the same period a year ago. Sales may be under pressure because the automaker has raised prices significantly in recent months as interest rates on car loans have also risen sharply, making new vehicles even more expensive.
Tesla says that it’s facing headwinds from the increased cost of raw materials and inefficiencies at its Gigafactory Berlin. Profitability has been impacted by a strengthening dollar. In December, the first electric big rigs will begin service for Pepsi, and after years of waiting, it will begin Semi deliveries.
The earnings report was the first since CEO Musk said a prototype version of a human robot would sell for $20,000. It arrives during Musk’s acquisition of the micro-communications service, which is controversial and chaotic.
With the number of distraction getting worse, investors hope that Musk and the executive team can meet their goals before the end of the year. There are also doubts as well.
Another reason Tesla’s stock is sinking: The US economy could tip into recession next year, hurting car sales. Musk said on an Twitter Spaces call Thursday he foresees the economy will be in a “serious recession” in 2023.
Turmoil in China is continuing to squeeze Tesla’s bottom line. Even after covid- related shutdowns became less frequent, officials ordered factories to shut down because of the hot weather.
Before Musk first started his efforts to buy Twitter, he rarely sold Tesla shares. Typically his sales were tied to what he needed to sell to pay taxes he owed on the exercise of options.
Musk is the heart and lungs ofTesla but his attention is solely focused on retweets, and that and selling stock on a continual basis is not a good combination “While 20% of the Tesla stock decline is due to concerns about demand and growing EV competition, 80% is because of his focus on Twitter. There needs to be a CEO who isn’t Musk.
Tesla’s growth prospects – a target of 50% sales growth annually, helped drive that valuation. It said in October that it would miss its sales target.
The Loss of the Richest Person in the World: The Impact of Musk’s Twitter Downgrade on the Tesla Phenomenology
The downgrade was due to the decision last week to ban several journalists, including Donie O’ Sullivan of CNN.
As CNN previously reported, Musk offered several journalists he banned from Twitter the option to return if they deleted the tweets he falsely claimed shared his “exact-real-time location.”
A ban on journalists without clear communication in an environment where many people believe free speech is at risk is too much for most consumers, according to Rusch.
Ross Gerber, a shareholder of both Musk’s companies, said on the weekend that he wants Musk to be the CEO ofTwitter in the first quarter of 2023.
Morgan Stanley still believes the company is somewhat undervalued as a result of the big recent sell-offs, citing its head start over the electric car competition, and potential tax advantages as a result of the Inflation Reduction Act passed earlier this year.
The losses, however, have further put a dent in the fortunes of one of the world’s richest people. At the beginning of the year, Musk’s worth was $43 billion, but now it’s less than half that. He lost the world’s richest person title two weeks ago to Bernard Arnault, the chairman of French luxury goods giant LVMH
(LVMHF).
Even as Musk signals he may give up his CEO title at Twitter, investors became concerned that the outlook for Tesla’s sales and profit is taking a turn for the worse. A sign of the weakening demand: Tesla has announced a rare sale. The company initially gave customers a $3,750 discount on delivery of a vehicle before the end of the year. Tesla then doubled that rebate to $7,500 last Thursday.
Why Tesla is so high in 2019? The automaker’s biggest critics, Gordon Johnson, says he has a pathological problem with the truth
“I think there is going to be some macro drama that’s higher than people currently think,” he said, according to Reuters, adding that homes and cars will get “disproportionately impacted” by economic conditions.
Critics of Tesla said much of its sky-high valuation was based on promises that Musk made about future products, many of which came years after they were originally promised.
The stock’s climb to dizzying heights – rising 743% in 2020 alone – was driven by Musk’s reputation as a genius who would disrupt the massive global auto industry.
It takes years for an electric pickup to catch up to its competitors, like Ford and Rivian, because of the slow ramp-up in production. It might be able to trail electric pickup offerings from General GM.
Gordon Johnson is one of the largest critics ofTesla and he says that the CEO has a pathological problem with the truth. His promises never live up to the level of genius that people say he is.
He said that demand in the US has fallen. Two or three months ago, your wait time was less than that. Now you can get one immediately. They are going to build more cars than they sell. The definition is of excess capacity.
Electric vehicle sales increased last year despite the tough year for the auto industry. And Tesla continues to dominate the electric vehicle market.
Tesla is not a software company, but a “stratospheric” is the bang of the tech world: after Musk and Moody left Tesla
But this week began with Musk running a poll – on Twitter of course – asking if he should give up the CEO title at his social media plaything. 58.7% of those who voted want him to go, and he promised to comply with the result.
It may have endeared him to some but angered other potential buyers, including liberals who might be willing to pay a premium for a more environmentally friendly vehicle.
The electric-carmaker lost a large amount of its value. And the company kicked off the new year with yet another plunge, dropping 12% in a single day after disappointing sales figures were announced.
They started the year with shortages of parts that kept lots very empty, and ended the year with sky-high vehicle prices that could turn away would-be buyers.
The bad news for Tesla? Competition is increasing. At the high end of the market, names such as Mercedes-Benz, BMW and Audi are starting to cut into the territory of the models that are more expensive.
“We have a bunch of cars that are competing on even footing with Tesla in that they’re performance oriented, they’re luxury,” says Brian Moody, the executive editor of Autotrader.
Musk himself encouraged that, calling Tesla a “software company.” “stratospheric” was thrown around a lot as the stock price spiked so high that it was not possible to justify it based on production or revenue figures.