Tesla Stock: Here We Go Again
Tesla Issues Fifth Price Drop Since January.
avatar
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2023-04-08 11:30

Tesla Gives Bears a Happy Easter Long Weekend
There may not be a more vocal group of bears than Tesla (NASDAQ: TSLA) bears. Well, except maybe for Tesla bulls. This week opened with Tesla announcing its first quarter deliveries report which is always a polarizing subject. The company does not actually report sales, just vehicle deliveries and production numbers. It is the closest thing we get to actual sales figures, and it is often met with some skepticism.
Tesla Stock: Here We Go Again
For the first quarter of 2023, Tesla delivered a total of 422,875 vehicles and produced 440,808. Depending on which analyst you follow, the company either narrowly beat or missed these numbers. To be fair, the report did come more or less in line with Tesla’s own estimates. The figures represent a 36% increase on a year-over-year basis but only a 4% rise on a sequential quarterly basis. Of the 422,875 vehicles that were delivered by Tesla, 412,180 of them were either the Model 3 or the Model Y, the company’s two cheaper models. Tesla also did not include the new Tesla Semi in any of its figures. The company has forecasted that it will deliver more than 1.8 million vehicles for the year.

The year-over-year numbers are more impressive than the sequential quarterly ones for sure. Bulls and bears will likely have a tug-of-war debate over those two statistics. Tesla’s slowdown should come as no surprise. Another strong indicator of consumer health is the monthly sales report from the retailer Costco (NASDAQ: COST). The company saw just a 0.5% rise in net sales and an 11.6% decline in online sales. Higher costs are clearly hitting consumers and the data is starting to back this up.

Tesla Issues Fifth Price Drop Since January
That’s right, the deliveries were not the only news from Tesla this week. On Friday, when the markets were closed, the EV maker slashes prices in the United States by between 2% and 6%. It was the fifth such price drop since January. Bears are pointing to a drop in demand, although Elon Musk himself got on Twitter and stated that if consumers cannot afford the vehicles, the demand means nothing. Analysts and investors are concerned that continued price drops will hit Tesla’s profit margins this year.

So now the real question: what are we doing with Tesla’s stock? Shares of the company already had a rough week, falling by more than 6% over the past five days. Is this a buying opportunity or could we see further downside risk? Even as someone that has long been bullish on Tesla, I cannot help but see further downside in the near future. With first-quarter earnings around the corner and increased US regulation that is impacting the EV rebates that consumers receive, it could be a challenging year for the company.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2023-04-08 11:30

avatar
About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Levi Strauss' Bold Gambit: Is the Denim Icon's DTC Shift Enough to Weather the Storm?
Levi Strauss & Co. boasts a strong quarter with direct-to-consumer growth and innovative fashion, but can it navigate the choppy waters of the retail market?
By Alfonso | 4 months ago

Amazon's Bold Counterattack: Introducing the China-Direct Discount Section
As competition heats up, Amazon unveils a daring new strategy to offer unbeatable prices and direct shipping from China.
By Alfonso | 4 months ago

Tesla's Legal Challenges: Facing the Music on Autopilot Misrepresentation
Court ruling intensifies scrutiny on Tesla's self-driving claims.
By Alfonso | 6 months ago

Netflix's Ad-Supported Triumph: A New Era in Streaming
Surpassing 40 million users, Netflix’s ad-supported plan redefines the streaming landscape.
By Alfonso | 6 months ago

Tesla Stock (TSLA): Look Who's Back!
I’m cautiously optimistic but I’m at the point where I need to see it to believe it.
By Mike Sakuraba | 6 months ago

2 Earnings To Pay Attention to Next Week
Since big tech is the theme, you probably know what I have my eyes on for next week.
By Mike Sakuraba | 6 months ago

2 Stocks to Watch Below $10
Here are two stocks that are currently less trading in the single digits that I believe have some relative upside from their current prices.
By Mike Sakuraba | 6 months ago

Looking Ahead to Tesla's Earnings: What Can We Expect?
Is there any stock that has been more talked about than Tesla (NASDAQ: TSLA) as of late? It’s a company that is always in the spotlight but the stock is under some heavy scrutiny this year and deservedly so.
By Mike Sakuraba | 7 months ago