All eyes on Wall Street will be on this Wednesday, October 20, Tesla shares. Is that Elon Musk’s company will release the results of the second fiscal quarter of the year, a period that is considered key by analysts.
The electric carmaker has been posting large numbers in previous quarters, but expectations are centered on whether it has managed to maintain that level of revenue and earnings growth despite negative publicity in recent weeks and the emergence of strong competitors in China.
In addition, it is necessary to know if Tesla is better able to overcome the problems of the shortage of semiconductor chips and the so-called crisis of the containers than most of the giants of the automotive world. The reported period will be from July to September 2021.
The best Tesla numbers could come from the brand’s gigafactory in Shanghai, which has surpassed that of Fremont, California, in terms of production, and has cut costs with the use of more Chinese parts, including batteries.
Tesla began delivery from that Asian plant of a less expensive version of the Model Y sports utility vehicle, equipped with cheaper batteries made by China’s CATL.
Musk himself, meanwhile, was the one who confirmed that the Shanghai factory already produces more units than the only plant the company has in the United States.
Although Tesla has not been oblivious to the global supply chain crisis, analysts understand that it is overcoming it better, in part, because it has had no problem paying more. Musk said “it hasn’t been that long,” but analysts (and investors) want to know how that marketing strategy of paying “whatever it takes” has impacted costs to get the products to term.
Tesla’s pricing strategy has been, in parallel, to raise them in the United States, to offset the pressure of costs, and reduce them in China, where it faces greater competition from local rivals, such as Nio, Li Auto and Xpeng.
China no longer supports Tesla 100%
While Tesla received strong backing from the Xi Jinping government when it built the first fully foreign auto plant in China in 2019, in recent months regulators have fallen on it, along with consumer complaints about product safety and other issues. .
Similarly, Tesla’s sales in China increased 45 percent in the third quarter from the previous quarter, thanks to higher exports to Europe.
Tesla shares reached $ 870 on Tuesday, 3.1 percent more than the previous close. The price is approaching its all-time high of $ 883 achieved on January 25.