To The Moon

Did Tesla stock imitate Barron’s post (see below) or was it vice versa?

On Mon, 09 Oct 2023 — $Tesla Motors(TSLA)$ stock fell -0.18%, after the company reported a -11% decline for September delivery YoY, in the world’s biggest EV market, China.

Based on Barron's post, Tesla delivered some 74,000 EVs from its Shanghai Gigafactory.

This is down from approximately 83,000 EVs in September 2022.

Further drill-down revealed that Shanghai-made Model 3 & Model Y were the culprits.

The drop was attributed to lower demand for the Model 3 sedan and increased competition from local rivals like $BYD Co., Ltd.(BYDDF)$, $Li Auto(LI)$, as per data from China Passenger Car Association (CPCA).

As much as I would like to say that $XPeng Inc.(XPEV)$ and $NIO Inc.(NIO)$, are Tesla’s equal rivals, I do not think both of them can be declared as rivals. These 2 of the 3 Musketeers are not quite there yet.

Chinese rival BYD, with its Dynasty and Ocean series of EVs and petrol-electric hybrid models, saw passenger vehicle deliveries grow +42.8% to 286,903 last month, from 200,973 in September 2022.

I feel the Barron’s post has omitted a very crucial mention in its post (see above).

With all the generous discounts offered by mr musk, the margin (profits) per EV has become “razor thin”.

While sales volume may improved, the same could not be said about its bottom line.

Am I onto something?

Tesla’s investors were not rattled by the disappointing numbers.

They were willing to wait for its Q4 2023 results, that are expected to show a rebound in China sales as Tesla ramps up production of the Model Y (SUV).

If mr musk is able to deliver the “way over due” Cybertruck and the Semi; redemption might be on the card.

To be objective, Barron's also reported that Tesla's global deliveries for Q3 2023 were still strong at 241,300 units, up +20% YoY, beating Wall Street estimates.

On Mon, 09 Oct 2023 — Tesla's stock price closed at $259.37 down from $261.16 on October 4, 2023.

Will Tesla continue to fall, or will the below post cause it to CRASH?

• On Wed, 04 Oct 2023, Ms Cathie Wood's Ark Investment Management sold 97,599 Tesla shares for around $25.5 Million, based on a sell-off price of $261.16 per share.

• This was based on the company's daily trade disclosure.

• The following day, Thu 05 Oct 2023, Ms Wood further sold a modest 107 Tesla shares for around $27,825, based on a selling price $260.05 per share.

• Finally on Fri, 06 Oct 2023, Ms Wood finished off the week by further unloading 16,617 shares for around $4.33 Million.

• Do you think Tesla will continue to fall?

• Do you think when Tesla’s quarterly earnings are released, will its Net Income cause it to dip further?

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