XPEV - Tesla Analysts Lose Sleep Over Q3 Margins Rivian Stock Now Attractively Valued Fisker Eyes Chinese Frontier And More: Biggest EV Stories Of The Week | Benzinga
Electric vehicle stocks turned in a lackluster performance in the week that ended on Oct. 13, with the volatility in the broader market serving a a drag on a week during which inflation and the start of the earnings season took the spotlight. Market leader Tesla, Inc. (NASDAQ:TSLA) had a down week ahead of the release of its earnings report.
Here are the key events that happened in the EV space during the week:
Tesla Q3 Margin Worries, Shareholder Focus On Cybertruck And More: Ahead of Tesla’s third-quarter earnings, bullish analysts expressed concerns about the company undershooting margin expectations. Future Fund’s Gary Black said the most crucial metric this quarter is the auto gross margin, excluding regulatory credits. While the Street estimate pegs this figure at 18%, Black's projection is 17.1%.
A key question this time is what Tesla’s management will communicate during the conference call regarding whether auto gross margins in the fourth quarter will drop below those of the previous quarter, Black said.
Gene Munster, a managing partner at Deepwater Asset Management, said the 11.5% price reduction, accounting for vehicle mix, resulted in a roughly 26% decrease in gross profit. He modeled auto gross margin, excluding regulatory credits, to come in at 17.5% to 17.8%.
Meanwhile, Tesla shareholders are all focused on the way forward. Shareholders owning approximate.y 3.1 million shares of the EV pioneer are keen to know the number of Cybertrucks the company hopes to deliver in 2024, according to a third-party ...