Carwar: What is believed, Elon Musk’s promises or the terrible results of Tesla for the first quarter?
Even the permanent bullish crowd of analysts covering Tesla is warning of disappointing results in the Q1, a view that the weak records of the quarter reported in early April.
But the numbers issued after the market closed on April 22 were much worse than expected. Car sales fell by 20 % during the same period last year to $ 14 billion. Despite the 12 -month strong gains in the artificial and residential batteries storage concession, the total revenue decreased by 9 %. The decrease in profitability in sales decreased, which led to a decrease in net income by 40 % to $ 409 million, much lower than expectations of more than $ 600 million by Wall Street.
In the aftermath of a bad report, but not as a bad dismissal Q4, this writer presented a new concept to measure the repetitive Tesla profits and the stimulants created by its current business – which includes car and battery exclusively, as well as a small service unit. To get there, these gains were canceled once as a great tax benefit in the last quarter of 2023, and unlawful profits for the acquisition of $ 600 million of bitcoin possesses in the fourth quarter. The profits were also canceled from the sale of organizational credits to competing car makers, a benefit that Musk itself says will prove quickly.
What we call extremist profits shows the extent of the giant Tesla-812 billion dollars at the present time-justified by the maximum of what he is doing now, although her current business is declining, and the amount of MUSK promises to vehicles, software and self-driving robots. So far, these assurances have proven to be a continuous horizon.
Last quarter, Tesla lost money on the work of “militants”
To reach this number, it started with net profits of 409 million dollars, and offering its profit after deducting taxes from selling organizational credits. This number is $ 433 million, and it represents more than 100 % of Tesla’s total profits. During the past four quarters, Tesla has published “hardline”, and we hope it will be “repetition” $ 3.5 billion. Consequently, it is now sold at the rate of P/E for more than 230 (evaluation of $ 812 billion divided into my profit of $ 3.5 billion). By the way, at its peak in 2022, the “militants number” in Tesla this year was nearly $ 12 billion, over the course of three times what it achieved in the past 12 months.
Let’s give the business of P/E out of 20, twice the average global industry, just to be generous. This places the value of its operations currently at $ 70 billion. The full team of $ 742 billion is basically a blind vote of confidence that Musk will achieve years of profits from here rarely witnessed in the records of capitalism and no one has achieved by a player at the age of Tesla and its size.
If you want to return 10 % of here, the price of Tesla will need to double from $ 235 to $ 470 in seven years. Of course, Musk’s Machine arrived there just two months ago. But the future looks very dimose now than it was on the upcoming days after Trump was elected. Hitting value means that the Tesla market cover must also double, to more than $ 1.6 trillion. In A, again, generous forecasts of 30 P/E, net profits required for more than $ 50 billion. Cars will not do it. Tesla will need to win half of what Apple is now creating on privileges that are still today in the world of gauze assurances.
Musk seems again to bother investor minds
Tesla Q1 blame for the miserable performance for “uncertainty in the car and energy market [that] It continues to increase as the advanced trade policy rapidly affects the global supply chain and the cost structure in Tesla and our peers. In other words, Tesla blames the head of Musk at the White House.
The market is chanting, at least now. In trading after working hours on April 22, Tesla gained 3.5 % after a jump by 4.6 % during the day. In the music movie Music man, The seller of the seller Harold Hill Harold has encrypt the inhabitants of the good town of the legendary river in pushing tromone and chlinogens who were always on the verge of arrival. Institute WordPlay Hill visions of a great march band poisoning his fans.
The music man had nothing on Elon Musk.
This story was originally shown on Fortune.com
