$TSLA Weak Quality Beat Triggers Reversal

Michael Esther
04-24 10:27

$Tesla Motors(TSLA)$ beat EPS expectations at $0.41 vs $0.37 and made $22.38B.

Here's why it SPIKED then crashed...🚩

The single largest driver of the profitability improvement was "one-time benefits related to warranty and tariffs" not cost cuts, not volume growth, not FSD revenue.

This is not good.

Tesla built over 50,000 more vehicles than it sold, signaling significant inventory buildup.

You don't want cars sitting on lots.

Remember, net income was only $477M on $22.4B in revenue a 2.1% net margin while the company trades at over 150x GAAP earnings.

Energy storage revenue fell 12% YoY sec, which was supposed to be Tesla's fastest-growing segment.

So pay attention, the quality of the beat is questionable it was built on one-time items, not organic business acceleration.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment