div > div.group > p:first-child"> Shares of the company tanked more than 8 percent at one point Friday morning. Investors also reacted to Musk's comments on Thursday that it wouldn't be profitable in the first quarter.Morgan Stanley analyst Adam Jonas also seemed skeptical, saying:"While this may stabilize the air-pocket in Q1 sales, we're concerned it's a sign of a brand that may be, at the margin, losing its halo of exclusivity.
"Tesla significantly increased its efforts to promote the sale of cheaper cars. ... While this may stabilize the air-pocket in Q1 sales, we're concerned it's a sign of a brand that may be, at the margin, losing its halo of exclusivity. We think the bears have more material to work with than bulls here."
"Given its seeming abruptness, it does not appear that yesterday's announcement was made from a position of strength. ... We believe that a $35k Model 3 has close to ~0% gross margins today, suggesting that these price cuts could materially dilute Model 3 and company gross margins initially — we estimate up to 600+ bps and 400 bps respectively.
"The release of the standard version is earlier than we and the market expected... We had expected the base model to be released after deliveries were further underway in Europe and China...Mechanically, as this lower priced model is added to the mix, it may be harder for TSLA to hit its 25% gross margin target. Model 3 gross margins were above 20% in Q4 on what we estimate was an ASP of over $55k...
This is a misleading article. Not only did they ONLY quote from brokers with sell/neutral ratings, but the positive comments were also left out. Example: Bernstein explicitly stated that the announcement was neutral in the NT and positive LT, and yet that was left out
I hope you do not release your version of a pickup.....put 10 truck people in a room with an artist.....you will get something worth bringing to the market.
Like Elon gives a 💩 about what WS analysts think — neither do I. Fact is WS analysts are a bunch of overrated, self serving, fortune tellers. Google WS analysts’ recommendations on Amazon since inception to see for yourself!
I’m unimpressed with his mouth lately! He needs to quit tweeting. He’s been given a pass for his supposed genius but not anymore!
I'm unimpressed with the Tesla analysts, frankly, all analysts. What are they doing that's so great?
Profits matter most, and how will they do it?
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