Washington (Reuters) -Tesla said on Wednesday that the initial versions of an affordable car has built, a movement that is probably meant to stop the steep fall in sales that the company experienced in markets around the world.
The electric vehicle maker of Elon Musk placed the worst three -month sales decrease in more than a decade and profit that Wall Street objects missed, but the profit margin for making cars was better than many feared.
Market reaction:
Tesla shares fell nearly 5% on the market after hours.
Comments:
Jacob Bourne, Analyst, Emarketer, New York:
“Tesla's disappointing results are not surprising in view of the rocky way it has recently traveled. But the company maintains a strong base in the most important growth engines of energy storage, robotics, and AI-driven transport. Although traditional automakers such as GM EV market share can expect, there are greater challenges on the hand of diploma-changes. -Makers in that market.
Tesla does not have to choose between cars and future technology. There are technical synergies between EVs, robotaxis, energy systems and robotics that can speed up innovation on all fronts. The question is whether leadership can perform this integrated vision in this fast -moving market. “
Andrew Rocco, stock strategist, Zacks Investment Research, Chicago:
“On Wednesday evening, Tesla delivered little to the expectations of the top and the soil. Despite the winnings, Tesla shares were built early by the fact that bleeding in gross margins apparently came to a halt, with gross margins. And lower prices for his consumers.
In the report, the expectations of Wall Street were terribly in the midst of a slowing core and the reputation damage of CEO Elon Musk on both sides of the political aisle. Nevertheless, Tesla took the low bar that was a dramatic profit mist and supplied income that were better than most feared.
Moreover, just before the market ended that Tesla was in “early conversations” with the state of Nevada to expand its robotaxi service. If Tesla can convince investors that it will quickly scale its robotaxi service, shareholders will be more forgiving with regard to the Core EV activities, while Musk and his team try to extend to new verticals, transition and diversification of the company. “
