Tesla Slipped 1% in Pretrading after Plunging 9% on Thursday

Tiger Newspress2023-10-20

Tesla slipped 1% in pretrading after plunging 9% on Thursday.

Tesla stock has dropped after its "disappointing" Q3 earnings announcement. Tesla is trading around $225, down roughly 7% in pre-market when writing this. While Tesla's margins contract during this challenging phase, margin compression could be transitory. The slow growth and high-interest rate economic environment negatively impact Tesla's bottom line.

Price cuts, inflation, high borrowing costs, and other temporary elements are eating into Tesla's bottom line, negatively impacting its stock price. However, Tesla's fundamental backdrop should strengthen as the economic downturn passes and the economy returns to normalized financial conditions. Due to Tesla's dominant, market-leading position, its economies of scale, and other competitive advantages, its revenue and EPS growth could accelerate in the coming quarters, leading to a much higher stock price in future years.

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Comments

  • G sidhu
    2023-10-20
    G sidhu
    Sell buy again around $170
  • Bobjojuki
    2023-10-20
    Bobjojuki
    Hold or sell? 
  • Coldastone17
    2023-10-20
    Coldastone17
    20 oct..alot of options call. Think about tis
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