due largely to concerns over additional price cuts, which will continue to eat into Tesla's falling margins. If further roadblocks delay the full production and delivery of the coming Cybertruck, Jonas said, the price cuts are likely to continue.The ongoing price war that Tesla seems so determined to win represents a trend that, to Wedbush analyst Dan Ives,
Jonas projected that Tesla's gross margin for the quarter will fall to the 17.5% range, down from the 24.3% the company boasted as recently as December 2022. Other analysts have predicted that should the price cuts continue, Tesla's margins could fall below 15%. It seems that perhaps even Cathie Wood, a Tesla bull if ever there was one, is not opposed to benefiting from some upside before the likely volatility of the stock in the hours and days following its earnings report.
Ark Invest's flagship Innovation ETF sold 7,759 shares of Tesla Oct. 16, worth just shy of $2 million based on Tesla's closing price of $253.92. Still, Wood is clearly eager to be in a strong position to see plenty of post-earnings lift; Tesla remains the fund's largest holding by a significant margin. Ark Innovation's 2.7 million shares, worth $682.3 million, are weighted at more than 10% of the fund.by varying amounts over the past few weeks as Wood strives to maintain a holding that does not exceed much more than 10% of the fund.
United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »