A note on Bank of America Global Research back in April 2023:
"TSLA’s financial outlook is focused on longer-term targets, which it largely reaffirmed this quarter including:
1) 50% annual growth in vehicle deliveries over a multi-year horizon;
2) Sufficient liquidity for its product roadmap and capacity expansion;
3) Continued cost reduction in manufacturing/operations and hardware-related profits to be accompanied by software-related profits. Interestingly, during the call TSLA provided more details on the Energy business, which is expected to approximate the Auto gross margin level pre-price cuts (~25%) over time, but revenue will unlikely be as large as Autos.
Also, the company stated that its Berlin and Austin plants will be a margin headwind until intended volumes are reached. Further, Tesla commentary suggested that growing volume was a priority over pricing and near-term profits, and the intention is to realize greater profit from post sale products such as Full Self Driving (FSD). This is an opportunity that other OEMs are looking to exploit as well over time.
"TSLA’s financial outlook is focused on longer-term targets, which it largely reaffirmed this quarter including:
1) 50% annual growth in vehicle deliveries over a multi-year horizon;
2) Sufficient liquidity for its product roadmap and capacity expansion;
3) Continued cost reduction in manufacturing/operations and hardware-related profits to be accompanied by software-related profits. Interestingly, during the call TSLA provided more details on the Energy business, which is expected to approximate the Auto gross margin level pre-price cuts (~25%) over time, but revenue will unlikely be as large as Autos.
Also, the company stated that its Berlin and Austin plants will be a margin headwind until intended volumes are reached. Further, Tesla commentary suggested that growing volume was a priority over pricing and near-term profits, and the intention is to realize greater profit from post sale products such as Full Self Driving (FSD). This is an opportunity that other OEMs are looking to exploit as well over time.
Commento:
My drawing is still intact to trade TSLA into its earning.
