The company said margins improved thanks to better cost controls leading to lower-than-expected operating expenses.disappointing vehicle production
While some Wall Street firms are raising their price target's for Tesla, they're also questioning the sustainability of its profits.As the company works toward its ambitious vehicle production target of between 360,000 and 400,000 for the year and begins to bring its China facility online, analysts are warning margins could suffer. Nomura: "We expect some skepticism will remain for at least another quarter.
Levy added:"Our take – a strong step forward, yet Tesla will need to put together a string of similar datapoints to demonstrate the sustainability of results...and its track record has been spotty on this."RBC: "We struggle to understand how spending doesn't have to go up to support Tesla's growth ambitions.
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