Tesla investor Ross Gerber reacted to Tesla’s first quarterly report decline in nearly four years on Craman Countdown.
Tesla Quarterly Deliverablessales fell for the first time in nearly four years and fell short of Wall Street analysts’ expectations amid a fiercely competitive environment in the EV market and questions about the company’s direction.
of led by Elon Musk The automaker’s stock price fell 4.9% during Tuesday trading and was down another 0.28% in after-hours trading, bringing the stock price down nearly 33% since the beginning of the year. Following this, Tesla delivered approximately 387,000 vehicles in the first quarter, significantly lower than the expected 443,000 and an 8.5% decrease compared to the first quarter of last year.
“Let’s call it what it is. We were expecting a bad first quarter, which is hard to explain,” Wedbush Securities managing director and equity analyst Dan Ives said in a note to investors. , it was a first quarter of unmitigated disaster,” he wrote in a note to investors.
Tesla stock falls due to massive delivery shortfall
Tesla delivered about 387,000 vehicles in the first quarter, well below the 443,000 that some analysts had expected, and a decline of 8.5% from a year earlier. (Joe Radle/Getty Images)
He added that the company “remains bullish on the long-term story given the growth outlook,” but said the delivery performance was “like a train hitting a brick wall quarter” for Tesla. .
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 166.63 | -8.59 | -4.90% |
Tesla was facing an escalating situation China’s price waris a key market for EV makers as lower-cost competitors like BYD have been forced to cut prices and margins.
High interest rates in the United States, a byproduct of the Federal Reserve’s fight against inflation, also make interest rates more expensive for Americans. american car buyers – Dynamic Tesla tried to counter with temporary discounts to attract customers.
Tesla faces new competition from Chinese EVs that are cheaper than the Model 3
Elon Musk has faced criticism over Tesla’s poor performance. (Slaven Vlasic/New York Times/Getty Images)
The company also experienced production issues at its Gigafactory near Berlin, Germany. The company announced a two-week suspension of production at the facility from late January to early February due to a parts shortage caused by the Red Sea shipping crisis caused by the Iranian-backed Houthi rebels. In March, an arson incident by environmental activists occurred at the same facility, forcing production to halt for nearly a week. power transmission Facilities that helped provide electricity to power plants.
Despite facing a variety of headwinds in the latest quarter, Ives said Musk needs to right the ship to restore investor confidence in the leadership of the world’s most valuable automaker.
“For Musk, this is a crossroads for Tesla to get through this turbulent period. Otherwise, difficult days may lie ahead, with continued debacles around margins, production, and ongoing macro events.” As the company continues to grow, Musk will need to quickly take back the reins, looking several quarters ahead and regaining the confidence to command the street’s attention. ”
Tesla CEO Elon Musk visits Giga Berlin as production resumes after arson
Tesla’s quarterly deliveries were about 70,000 fewer than Wall Street expected. (John Paraskevas/via Newsday RM/Getty Images)
Ross Gerber, CEO of Gerber Kawasaki, said this in an appearance on FOX Business. “Craman Countdown” Tesla’s disastrous quarter should increase scrutiny of Tesla’s board and CEO Elon Musk’s oversight.
“How many mistakes can a board make? There is a problem with pay packages in Delaware. We know that is not an independent board,” Gerber said.
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Host Liz Claman discusses competitive challenges in China and production problems Gerber said some of these factors shouldn’t be ignored, adding that Tesla cars are “the best cars on the road from a quality, performance standpoint, and they’re really cool cars.” Ta.
Reuters contributed to this report.
