News Summary

• Related article Elon Musk says Chinese electric car brands could ‘demolish’ rivals as Tesla earnings fall It was the second straight quarter the company fell short of earnings forecast by analysts, following a string of better-than-expected results stretching back to the start of 2021..
• Tesla’s (TSLA) financial results for the last quarter also disappointed, with adjusted earnings per share down 40% from a year earlier, and revenue, which rose 3% to top $25 billion, coming in below market forecasts..
• In an earnings presentation Wednesday, the world’s most valuable automaker said its sales growth this year “may be notably lower” than last as it continued developing the “next-generation” vehicle, likely a lower-priced model..
• While Tesla’s earnings were “disappointing and uncharacteristic,” Garrett Nelson, a senior equity analyst at CFRA Research, expects the launch of its lower-cost vehicle in the next few years to provide “the catalyst the stock needs,” he wrote in a note Wednesday..
• Shares in Tesla plunged 12% Thursday, wiping $80 billion off the company’s market value hours after it warned of slowing growth in electric car sales and an existential threat from Chinese rivals..
• The stock doubled in price during the course of 2023, but those gains came in during the first half of the year and Tesla shares were off to a weak start in 2024, falling 16% before Wednesday’s earnings report..