🙄 Tesla Goes Up On The Floor Now? Finally Entry Point?

• Tesla Reveals Worst Q1 Earnings: Both Revenue And Profit Missed Expectations, And Operating Margin Tumbles From 11% To 5%.
• Was the outlook good? No, it wasn’t. Tesla expects sales growth to ease this year compared to last year.
• Nevertheless, the reason for the 18% surge during the day is Elon Musk’s mouth. To be precise, I said everything the market wanted…
• It’s AI, FSD, Model 2, and RoboTaxi, which shows you a world-class vision that encompasses everything Main Street and Wall Street wants.
• The timing was also amazing, when it was exactly long-term buying, and Musk’s vision was presented along with earnings, which surged along with trading volume.
• However, I personally have some doubts about whether this is a low point, given that the dust has not yet subsided in the EV industry, but Tesla, no, it is not predictable unless Elon Musk intervened.
• This is an in-depth analysis of first-quarter earnings that can be helpful if you are worried about whether to buy a Tesla or not. Revenue was $21.33 billion, about 4% lower than Wall Street’s $22.15 billion estimate and $23.33 billion lower than Wall Street’s $23.33 billion in the same period last year. Net income was also only $1.13 billion, down 55% from $2.51 billion in the same period last year.

In particular, continued sales growth and profitability, Tesla’s biggest strength, have been hit harder than ever. Sales have fallen 9% year-on-year, turning to their first decline in 12 years since 2012, and operating margins have deteriorated significantly to 5.5% from 11.4% a year earlier.

Tesla maintained a cautious outlook, expecting sales growth to slow down in 2024 compared to 2023. Nevertheless, it was Elon Musk’s presentation of a new vision that led to the cheers of investors. It was the mass production of low-cost models, the completion of self-driving technology through large-scale investment in AI, and the possibility of a robotaxi integrating them. Despite Tesla’s sluggish performance, it was the presentation of a vision for a new growth engine that really won the hearts of investors. Elon Musk called Tesla an “artificial intelligence and robot company” rather than an automobile company, indicating that it will achieve AI-led growth.

Tesla’s starting point for artificial intelligence was the FSD (Full Self-Driving) system. Tesla revealed that it was investing in artificial intelligence technology by burning huge amounts of cash. In fact, Tesla reported surplus cash flow of only $441 million in the first quarter, down sharply from $2.06 billion in the previous quarter.

In conclusion, I think we’re making a perfect transformation as an Ai company. That expectation saved Tesla, which was falling into the basement.