Friday, December 2, 2022
HomeTeslaTesla stumbles in the second quarter and disappoints the markets

Tesla stumbles in the second quarter and disappoints the markets

Elon Musk had warned: the second quarter would be worse than expected… It’s not even good at all. With deliveries down 18% compared to the first quarter, Tesla is breaking with the crazy growth of recent years when deliveries have grown steadily to the point of catching up with certain historic brands (Volvo in 2021, Audi in 2023, etc.). But the American automotive group ended up being overtaken by market supply difficulties and the health crisis.

A highly monitored indicator

With 254,695 cars delivered between April and June, Tesla is however doing better than over the same period a year earlier (+27%), according to results published on Saturday. But analysts were counting on 264,000 deliveries. The markets follow this indicator like milk on fire while Tesla is one of the most important stocks on the New York Stock Exchange. Certainly, it has lost its luster since the 1,000 billion dollars of capitalization reached in 2021, but at 700 billion dollars, the Californian specialist in premium electric cars continues to be worth more than all the car manufacturers in the world. reunited.

Tesla: Elon Musk prepares minds for a catastrophic quarter…

However, the question of industrial ramp-up was one of Tesla’s weak points until 2020 before the group finally moved up a gear with the opening of new factories. In 2021, the group announced that it had delivered one million cars against 750,000 initially planned. And Elon Musk promised to keep an annual growth rate of 50% per year. In 2022, the opening of the Berlin factory and the arrival of new models, including the Model Y, should enable it to achieve this objective. But it was the drastic Chinese sanitary measures that seized up the mechanics. The Shanghai factory thus remained closed for several weeks while the authorities confined the entire region due to a risk of an epidemic resurgence of the Coronavirus. In April, sales fell by 98% in the Chinese market, its second largest market in the world (a third of sales).

Abyssal losses in sight?

But the flamboyant boss of Tesla, currently mired in the spectacular and controversial takeover of Twitter, judged that he still intended to deliver 1.5 million cars in 2022. For their part, analysts revised their forecast slightly to 1.4 million registrations. The latter are now eagerly awaiting the quarterly financial results (the Tesla stock lost 38% in the second quarter). Elon Musk recently claimed that Tesla was “burning a gigantic amount of money”, putting his losses in the billions. If confirmed, it would contrast with the performance in the first quarter when the company increased its net income sevenfold ($3.3 billion). To fuel this prospect of abysmal losses, Elon Musk announced a few weeks ago the elimination of 10% of the workforce, or 10,000 jobs. Tesla will release its results at the end of July.