Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Chief Investment Strategist
Tesla reported Q1 earnings last night and while most numbers fell short of analyst expectations, Musk’s showmanship managed to sway markets into buying the narrative of a brighter future for Tesla driven by its “revolutionary” cybercab and plans to produce cheaper models already in 2025. This sent the share up 13% in extended trading despite the disappointing financials. We believe investors should remain cautious on Tesla shares and await a stabilisation of the gross margin as Tesla’s valuation is difficult to defend if it turns out there’s no meaningful moat in the electric vehicle industry. Below we share our take on the status on Tesla and the highlights of the report.
The status of Tesla:
Earnings report highlights:
Other relevant highlights:
Tesla weekly share price