Tesla Stock Analysis (October 2023)

Join the newsletter: https://www.overlookedalpha.com Should you buy Tesla stock? Ticker: TSLA Total revenue fell 6% from the previous quarter. Free cash flow was down 74% year over year and operating income fell 52%. Tesla bulls have long claimed that Tesla’s incredible operating margins prove it’s no ordinary carmaker. But the latest operating margin was only 7.6% which is lower than both Toyota and Stellantis. And these poor results are not only down to Tesla lowering prices. Total vehicle deliveries were also down, by 7% on the quarter. So it’s clear that Tesla sales are being impacted by a decrease in demand as well. This clearly has a lot to do with higher interest rates which significantly affect the affordability of new vehicles. But it could also highlight the impact of competition from the likes of BYD and all the other automakers vying for market share. Even Tesla’s energy segment was a disappointment with revenue increasing by only 3% against the previous quarter. On the positive side, Tesla is still on track for 100 billion dollars of revenue this year and the company now has 26 billion dollars of cash on the balance sheet. There is also a huge amount of demand for the Cybertruck and deliveries should start to ramp up any day now. Meanwhile, the Tesla’s investments in supercharging, AI, self driving and robots give the company a number of advantages. #investing #stocks #stockstowatch #teslastock #tesla