Tesla Q4 Earnings and Beyond: Is the EV Story Over?
Tesla's Q4 earnings are imminent, and with them, a renewed focus on margins and the future of the company. While the robotaxi and humanoid robot projects generate excitement, EVs remain Tesla's core business. Are we witnessing a shift in focus too soon? With anticipated Q4 gross auto margins hovering around 15%, is this sustainable in the long run?
Morgan Stanley’s Adam Jonas highlights a potential slowdown in FY25 volume growth, citing increased competition, especially from China, and potential changes to EV incentives. Is this overly pessimistic, or are the headwinds facing Tesla stronger than we realize? The looming question of EV incentive changes under a potential Trump administration adds another layer of uncertainty. How significant an impact will this have on Tesla's long-term strategy?
Beyond the numbers, Jonas emphasizes the importance of Tesla's data collection capabilities. He refers to Tesla vehicles as “probes” gathering crucial information for AI development. Is this the real future of Tesla, a data-driven AI powerhouse rather than just an EV manufacturer? How does this reshape our understanding of the company's valuation and potential?
Jonas further predicts a “race for photons,” with companies vying to collect sensor data. Where does Tesla fit into this landscape, and what advantages, if any, does it hold? He also draws parallels to the Monroe Doctrine, suggesting a push for domestically sourced EV technology. Could this protectionist approach benefit or hinder Tesla’s growth?
While Jonas remains bullish with a $430 price target, the overall Street consensus leans towards a more neutral stance. Is Wall Street missing the bigger picture, or is Jonas’ optimism misplaced? Let's discuss the future of Tesla beyond EVs, the potential impact of political and economic factors, and whether the current valuation accurately reflects the company's true potential.
Tesla Q4 Earnings and Beyond: Is the EV Story Over?
Tesla's Q4 earnings are imminent, and with them, a renewed focus on margins and the future of the company. While the robotaxi and humanoid robot projects generate excitement, EVs remain Tesla's core business. Are we witnessing a shift in focus too soon? With anticipated Q4 gross auto margins hovering around 15%, is this sustainable in the long run?
Morgan Stanley’s Adam Jonas highlights a potential slowdown in FY25 volume growth, citing increased competition, especially from China, and potential changes to EV incentives. Is this overly pessimistic, or are the headwinds facing Tesla stronger than we realize? The looming question of EV incentive changes under a potential Trump administration adds another layer of uncertainty. How significant an impact will this have on Tesla's long-term strategy?
Beyond the numbers, Jonas emphasizes the importance of Tesla's data collection capabilities. He refers to Tesla vehicles as “probes” gathering crucial information for AI development. Is this the real future of Tesla, a data-driven AI powerhouse rather than just an EV manufacturer? How does this reshape our understanding of the company's valuation and potential?
Jonas further predicts a “race for photons,” with companies vying to collect sensor data. Where does Tesla fit into this landscape, and what advantages, if any, does it hold? He also draws parallels to the Monroe Doctrine, suggesting a push for domestically sourced EV technology. Could this protectionist approach benefit or hinder Tesla’s growth?
While Jonas remains bullish with a $430 price target, the overall Street consensus leans towards a more neutral stance. Is Wall Street missing the bigger picture, or is Jonas’ optimism misplaced? Let's discuss the future of Tesla beyond EVs, the potential impact of political and economic factors, and whether the current valuation accurately reflects the company's true potential.
- By allmaxh