Tesla, Inc. (NASDAQ:TSLA) shares continue to see-saw, and on Wednesday they underperformed the broader market. As the lackluster phase is having an extended run, a fund manager delved into how the company can turn things around.
What Happened: The biggest threat Tesla currently faces is the likelihood of more price cuts, said Future Fund’s Gary Black in a post on X, formerly Twitter. He termed it as an internal risk.
Black estimates that Tesla’s earnings power may have been reduced by 48% by the price cuts implemented over the past 18 months. From $4.82 18 months ago, the 2024 earnings per share estimate now stands at $2.53, he said.
The fund manager also took a dig at the management for not trying out other strategies. “It's as if TSLA's marketing team has no other levers,” he said. The Tesla bull was alluding to communications to convince ICE owners as to why they should choose ...