Tesla Earnings...

[Buffalo Bob]

Tesla misses on revenue and earnings. Stock up $14 after hours. And I thought Steve Jobs was the master of the Reality Distortion Field.

 

[momo3605]

Tesla misses on revenue and earnings. Stock up $14 after hours. And I thought Steve Jobs was the master of the Reality Distortion Field.

They only delivered 1.78 Million vehicles on a 1.8 Million forcast! Rough days lie ahead...

 

[Buffalo Bob]

They only delivered 1.78 Million vehicles on a 1.8 Million forcast! Rough days lie ahead...

Units don't mean a hoot to a P&L.

 

[hmp10]

They only delivered 1.78 Million vehicles on a 1.8 Million forcast! Rough days lie ahead...

True. A 23% year-over-year drop in net income would, of course, be a cause of concern. As would a 19% drop in profit margin.

And, although the delivery numbers were only a slight miss, it was the first year-over-year decline Tesla has ever seen.

Notably, sales in the EU were down 13% in 2024. We watch and read a lot of German and Polish news in our household, and Musk's political shenanigans and right-arm dog whistles are not playing well there.

 

[momo3605]

True. A 23% year-over-year drop in net income would, of course, be a cause of concern. As would a 19% drop in profit margin.

And, although the delivery numbers were only a slight miss, it was the first year-over-year decline Tesla has ever seen.

Notably, sales in the EU were down 13% in 2024. We watch and read a lot of German and Polish news in our household, and Musk's political shenanigans and right-arm dog whistles are not playing well there.

I think deliveries were up 2% YoY but I agree. Overall profit loss is ultimately more important than deliveries

 

[Buffalo Bob]

Well, it's only trading at 118 times forward earnings. I remember when 10x was deemed about right for stock valuations, and it still is for many companies. That kind of multiple might have made sense in the early high growth years, but today? Ford I know is not apples and apples, but it is trading at 6x, and it pays a 6% dividend.

 

[scal_air]

Hi Buffalo Bob,
Explaining why how Tesla missed their estimates and went up, while other stocks exceeded estimates and went down would require an AI, apparently using a Chinese algorithm but with Nvidia's top chips. An alternate explanation would involve a political discussion which would not be enjoyed by many members and would probably get me banned...

 

[hmp10]

I think deliveries were up 2% YoY but I agree. Overall profit loss is ultimately more important than deliveries

Q4 2024 deliveries were up 2% over Q4 2023. But the YoY delivery numbers were down. Analysts had predicted the 2024 deliveries to be the same 1.8 million units as 2023, but they came in at 1.78 for 2024.

 

[Buffalo Bob]

Hi Buffalo Bob,
Explaining why how Tesla missed their estimates and went up, while other stocks exceeded estimates and went down would require an AI, apparently using a Chinese algorithm but with Nvidia's top chips. An alternate explanation would involve a political discussion which would not be enjoyed by many members and would probably get me banned...

Ha! You are of course all too correct. I guess it's just one of those times when we have to grab the bull by the tail and face the situation.

 

[Instinctive]

I thought this was the Lucid Investors subforum not the Tesla investors subforum?

 

[Joe]

I thought this was the Lucid Investors subforum not the Tesla investors subforum?

Yes. Topic moved to Off-Topic.

 

[Tâm]

Explaining why how Tesla missed their estimates and went up...

Explained by an article:

"Tesla stock rises after company pledges return to growth after Q4 results disappoint"

https://finance.yahoo.com/news/tesla-stock-rises-after-company-pledges-return-to-growth-after-q4-results-disappoint-230732196.html

 

[Lucken]

Explained by an article:

"Tesla stock rises after company pledges return to growth after Q4 results disappoint"

https://finance.yahoo.com/news/tesla-stock-rises-after-company-pledges-return-to-growth-after-q4-results-disappoint-230732196.html

Now now, we’ll have no possible factual explanations here, only political conspiracies are allowed.

 

[Buffalo Bob]

Ha! What company doesn't say something to that effect after a miss? Most companies get a huge haircut for the slightest miss... even when the miss is outstanding performance. Here is a company already priced for perfection, and the price goes up? Last quarter, all it took was mentioning the RoboTaxi, and that was before the election. I'm done now. Shouldn't have brought it up.

 

[scal_air]

As much as I respect Tam and Lucken’s opinions, a company with an astronomical P/E ratio misses analysts expected earnings and the company promises to do better which causes stock prices to go up? Can you envision the same with Lucid? Rawlinson says don’t worry next quarter will be great… I wonder what this company has that other companies don’t?

Oh and I have to add the end of the article cited …
“Asked on Wednesday's call about his role in the administration and helping push forward US industrial policy, Musk said, "In general, we need to make manufacturing cool again in America ... We have too much talent in law and finance in America, and there should be more of that talent in manufacturing."
Yep that explains Tesla’s after hours rise

 

[Lucken]

As much as I respect Tam and Lucken’s opinions, a company with an astronomical P/E ratio misses analysts expected earnings and the company promises to do better which causes stock prices to go up? Can you envision the same with Lucid? Rawlinson says don’t worry next quarter will be great… I wonder what this company has that other companies don’t?

Oh and I have to add the end of the article cited …
“Asked on Wednesday's call about his role in the administration and helping push forward US industrial policy, Musk said, "In general, we need to make manufacturing cool again in America ... We have too much talent in law and finance in America, and there should be more of that talent in manufacturing."
Yep that explains Tesla’s after hours rise

Off the top of my head one company has produced over 6 million cars, in many different price ranges and the other still has some people/investors worried (rightly or wrongly) about its survival. I have no intention of buying a Tesla since IMO Lucid produces far superior cars, but facts are facts.