BYDDY - Tesla Q4 Earnings Preview: Margins Likely To Slip Again

2024-01-23 10:45:50 ET

Summary

• Tesla, Inc.’s continued actions to improve vehicle affordability throughout the year have been detrimental to margins, as average selling price is falling quicker than production costs.
• It is imperative for the bull case that operating margins show sequential improvement in Q1 should it fall to the low 7% range in Q4.
• BYD Company has extended its lead against Tesla in China, especially so in Q4, proving that it can’t be ignored as a fierce competitor on the global stage.

Tesla, Inc. (TSLA) Q4 earnings are on tap after the market close on Wednesday January 24 , closing up a year in which aggressive price cuts helped the automaker top Q4 delivery estimates reach a new record and narrowly beat its 1.8 million volume target. Tesla’s continued actions to improve vehicle affordability throughout the year have been detrimental to margins, as average selling price is falling quicker than production costs....

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