The earnings report from Tesla (TSLA) may set a bearish tone for the electric vehicle market today. Last night, the firm posted steady gross margins and revenue compared to last year. TSLA stock fell by over 8.0% in response.
The stock already rallied from the $175 support level ahead of time, giving little post-earnings upside.
Tesla reported unit vehicle deliveries falling by 4.8% to 443,956. To avoid an inventory build-up, it cut total production down by 14.4% Y/Y to 410,831.
Watch competitor General Motors (GM) today. GM stock lost 6.42% on Tuesday despite posting profits growing by 60%. Its U.S. market share grew to 16.6% but fell in China by 220 basis points to 6.4%. Investors should take advantage of the unusually negative price action.
Tesla’s CEO may promise a Robo Taxi that has not yet been approved, battery storage technology, and AI. But competition, especially from BYD in China, is heating up on all sides.
Alphabet (GOOG), a magnificent 7, reported revenue growth of 13.6% Y/Y or $84.74 billion. Search and cloud are the two revenue drivers. GOOG stock will slip by 1.0% to 2.0% today but is still a good investment. The firm allocated its cash flow growth for dividends this quarter, paying $0.20. This yields 0.44%.
