$TSLA EPS estimates continue to fall due to the constant price cuts. TSLA FY’24 EPS ests have dropped -35% YTD (!) from $3.83 to $2.48. TSLA FY’30 EPS ests have dropped -36% YTD from $17.40 to $11.08. FY’24 deliveries are now falling too (-8.5% YoY in 1Q; I expect -10% YoY in 2Q). YTD through April, Chinese-based automakers have sold some 1.6M BEVs, up +9% YoY. If TSLA volumes were responding to the price cuts, we’d all be cheering. Obviously that’s not the case.
My polite suggestion to $TSLA mgmt: Learn some new tricks. Price cuts are one tool in the marketing mix. Convince ICE owners who still make up 85% of new auto and truck buyers to go EV based on charging convenience, upfront and ongoing costs, near autonomy, performance, safety, and the environment. The lack of creativity in communications is striking for a $570B market cap company.
I’m a $TSLA bull since 2019 having first bought in at $16/share.
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It’s the movie they really don’t want you to see: #WhatIsAWoman?
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The Fed will have no one to blame but itself for pushing the economy into recession to fight a Covid-driven core PCE inflation rate of +3.2% over the past two years - which continues to fall as the economy reopens and supply/labor pressures ease.