Basic on the article piece below and Source: https://www.wsj.com/articles/tesla-tsla-q3-earnings-report-2022-11666139620
1-. Student should write their opinion in 2 small paragraphs.
Tesla announces its highest ever Q3 revenues! But price is down about 5%!…what is going on?
As you may have seen, Tesla announced its third quarter results after the market closed on Wednesday night. It reported earnings per share (EPS) of $1.05, beating analyst expectations, and also posted its highest ever Q3 revenues of $21.45 billion, just shy of analyst expectation of $21.88 billion. However, the after-market trading when investors heard this news was a sell-off, and Tesla’s stock price was down 6% overnight, and is down about 3-4% in current trading, as of writing this post. So what didn’t investors like about this (fairly strong?) financial performance? Musk himself said that the company “expects to sell every car that we make for as far into the future as we can see”… so that should be good news!
However, in addition to slightly missing the revenue expectations, Tesla also announced a cut to its full-year growth expectations–Tesla had originally set a target to boost vehicle deliveries by 50% from last year –but it appears they will not meet that this year. This has clearly spooked some investors who have very large growth expectations built into their valuations! So while the quarterly performance was quite solid, it seems investors are now perhaps doubting the long-term growth projections of the firm.
See this WSJ article attached to this post for more info. Perhaps there are other sources with a different take on the matter?
2- Student should also answer in 2 small paragraphs: Why do you think investors are now doubting long-term growth?
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