Xiaolu Chu
Editor's Note: This article was amended on 11/29/2023 to reflect clarified commentary on Tesla's safety rating.
Failure of price cuts
Tesla, Inc. (NASDAQ:TSLA) sales growth has slowed noticeably over the last five quarters. Cracks started
Tesla's Cost Cuts Are A Strategic Error (Rating Downgrade)
Summary
- Tesla, Inc.'s price cuts have failed to boost sales and have resulted in reduced revenue and lower profit margins.
- Sales in Q4 are not trending towards new records, raising concerns about meeting analyst forecasts.
- Tesla's quality and service issues, including safety concerns and poor customer service, need to be addressed for long-term success.
I am a retired engineer and company manager. I do not have a financial background or offer financial advice.The articles I write are for interest only and I try to find subjects that interest both me and my readers.I usually take a small position in the companies that a write about, long or short, but most of my investments are in boring blue-chip dividend stocks.An engineering education has provided me with keen analysis skills. Working on projects in over 30 different countries and living on three different continents has given me a broad view of the world and a healthy skepticism about much of what I see in the financial media these days.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I will probably short this stock after the Cybertruck hype has died down.
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