Tesla Sacrificing Profits For Growth


  • Tesla set new records for deliveries in Q4, but about half of the sales came from a backlog that is now depleted, and new orders declined dramatically.
  • Tesla has slashed prices to revitalize growth. This will come at the expense of profit margins.
  • Elon Musk issued a veiled profit warning in a Twitter chat, indicating he would prioritize growth over profits.
  • With competition arriving in the EV sector, high margins with high growth rates are no longer possible.

Tesla Service Center. Tesla designs and manufactures the Model S electric sedan IV


Signs of slowing Tesla growth

Cracks first started to appear in the Tesla, Inc. (NASDAQ:TSLA) China growth story in Q3. Deliveries were strong, but many of those orders were coming from a backlog that had been accumulated during


Tesla – January 2021 price changes (Reuters)


Pro-forma calculation of operating margin (Calculated from Tesla financial statements)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in TSLA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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