Investors are worried about Tesla's margins❗

Yesterday's results of Tesla (TSLA.US) were relatively good. The adjusted EPS came out over 13% above the median of forecasts, and the gross margin, particularly scrutinized by investors, was 2.9% below consensus (18.2% compared to the expected 18.74%). So why are the company's shares losing nearly 4% before the opening of today's session on Wall Street?

Elon Musk, in a comment after the results, announced that margins might continue the downward trend. The company is considering further lowering the prices of its cars, and this trend is set to accelerate if interest rates continue to rise in the USA. This situation becomes unfavorable for the company as it goes hand in hand with increased vehicle production.

Selected results published yesterday by the company. Source: Bloomberg.

Production surpluses + falling margins may negatively impact the future situation of the company. Source: XTB

Even before the results, the market assumed that gross margins would start to rebound from the third quarter of 2023. Source: XTB.

Paradoxically, the tone of the next results may be improved by the planned restructuring of many Tesla factories, which will slow down the pace of car production.

Source: xStation 5