Tesla has lost 46% since its 2022 annual meeting. Will this event change course?

Tesla (TSLA) annual shareholder meeting is held on the Tuesday after market close. The event takes place days after CEO Elon Musk announced that there would be a new person at the helm of Twitter, signaling to TSLA shareholders that he might have more time to spend on the global electric vehicle giant.


There is a level of uncertainty in this gathering, as Tesla will likely choose to reveal new details about the Cybertruck, a revamped Model 3, next-gen EV, updates on battery developments and more. However, executives at Musk and Tesla could remain mum on the new products and instead highlight production cost-cutting, efficiency strategies, and full self-driving efforts.

The meeting is taking place at Tesla’s Austin factory and is scheduled to begin at 4 p.m. ET. Tesla has lost about half of its market value since its last annual meeting in August 2022.

Tesla stock rose 0.10% to 166.58 Tuesday during market trading. On Monday, the TSLA Index fell about 1%, to 166.35.

The annual meeting follows the quarterly report

On April 19, Tesla reported a significant drop in first-quarter earnings while revenue missed sights. Profit margins for the global electric car giant also fell below 20% as the company implemented an aggressive price-cutting strategy in the early part of 2023. Tesla reported a 24% increase in revenue to $23.33 billion on earnings of 85 cents per share, down 20%. compared to 2022.

Total EV gross profit was $4.5 billion, with Tesla gross margin of 19.3%, down from 23.8% in the fourth quarter and 29.1% a year earlier.

Gross profit margins for automobiles, excluding regulatory approvals and lease contracts, fell to 18.3% from 23.8% in the fourth quarter. That’s still less than the 20% gross margin “floor” that Tesla previously targeted.

Musk told analysts that Tesla is “comfortable” with its 2023 production goal of 1.8 million. However, he downplayed the 2 million production number it used at the end of the fourth quarter.

“These are turbulent times,” Musk said. “From a production standpoint, if all goes well, we’ve got 2 million cars here. But that’s the upside.”

Tesla Stock: Cybertruck Update?

With Tesla shareholders expected to focus on Musk and his leadership of the company during the annual meeting, investors will also be looking for clues about the often-delayed Cybertruck.

In previous reports, the Cybertruck is still “on track to start production later this year,” says Tesla. They officially consider the Cybertruck case to be “tools,” according to Tesla. Musk confirms that Tesla expects an e-truck delivery event, “likely” in the third quarter.

The Tesla CEO recently teased a Cybertruck, driving it through a groundbreaking ceremony at the Corpus Christi lithium refinery.

Bloomberg reported Tuesday that Tesla is also close to starting trial production of a refurbished Model 3 in Shanghai. However, it is not clear when real production will begin in China and later in the United States

Since Tesla Investor Day in early March, the company has been silent about its next-generation car, which will be produced at its new factory in Mexico.

Musk continues to emphasize self-driving

Musk has long touted Tesla’s fully self-driving technology and the potential value it brings to the brand.

“The value of a self-driving car is enormous,” Tesla’s CEO said during the first-quarter earnings call. Musk also stressed that the improvements in fully autonomous driving are “really very exciting.”

“The trend is very clear toward full autonomy, and I hesitate to say this, but I think we’re going to do it this year,” Musk said, referring to self-driving vehicles.

Musk tweeted on May 8 that Tesla will roll out a one-month free trial to all North American cars when fully self-driving is “super smooth (not just safe).”

Tesla stock

The electric vehicle giant is up about 67% from its January low, but has fallen significantly since the end of March. Tesla stock is still below the 50-day and 200-day moving averages.

If Tesla stock continues to recover, it is likely to form a double bottom base with a buy point of 207.89. But which direction the stock might go is still uncertain.

The TSLA stock bulls can spy aggressive entries, such as the 50-day line or perhaps a downward sloping trendline from the top of the three-month consolidation. However, the stakes are still high, especially in the current market.

Tesla stock ranks seventh in IBD’s automaker group. TSLA has a composite rating of 59 out of 99. The stock also has a relative strength rating of 20. The EPS rating for Tesla stock is 93 out of 99.

Please follow Kit Norton on Twitter @employee for more coverage.

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