Tesla shares fell 12% after earnings call, wiping out RM467 bil in value – lowest quarterly profit in 5 years, Tesla shares fell by 12% yesterday, wiping off almost US$100 billion in value. It was the biggest one-day percentage drop for TSLA since 2020, and it left the EV maker’s market capitalisation at just under US$700 billion, down from over US$1 trillion in 2021.
That’s in the future, but investors seem concerned about the present. Tesla posted its lowest quarterly profit margin in five years late, with earnings per share missing estimates for the fourth consecutive quarter,“All of Musk’s enthusiasm on the call, outside of storage, were for products that don’t exist,” TD Cowen’s Jeff Osborne pointed out to the agency. On that note, where’s the
Tesla has also been forced to cut prices and boost incentives to prop up sales of its aging model range. CEO Musk admitted that rivals “have discounted their EVs very substantially, which has made it a bit more difficult for Tesla”. The company said the cheaper model it expects to roll out in the first half of next year would result in less cost reduction than previously expected.