Expectation of a decrease in Tesla profit margin
Electric vehicle maker Tesla is expected to post lower profit margins amid doubts about its growth and product strategy.
Tesla’s sales growth is slowing, and that’s expected to be heavily reflected in Tuesday’s results. Tesla is expected to report its lowest gross margin in more than 6 years after a chaotic week that included layoffs and vehicle price cuts.
Tanaka Growth Fund portfolio manager Graham Tanaka said he liquidated his last position due to uncertainty about Model 2 and slow production of the Cybertruck electric pickup. “We think it will be more risky to own Tesla next year,” said Tanaka, adding that they do not know how quickly Cybertruck will rise.
Tesla CEO Elon Musk was expected to meet with Indian Prime Minister Narendra Modi on Monday and announce major investments in the automobile factory. However, Musk canceled at the last minute, citing Tesla’s “very heavy obligations.”