As Tesla Inc.'s earnings day approaches, investors are brimming with inquiries. The company's official outlook for the year, the demand scenario amidst a slowdown in electric-vehicle sales, and the EV maker's profit margins in light of recent price reductions are just a few concerns on their minds.
However, one question takes precedence over all others in the minds of retail investors, and that is regarding Tesla's next vehicle, aptly named the "Model 2." Priced at approximately $25,000, this is seen as the potential catalyst for Tesla's future growth, generating significant interest among investors.
This burning question has garnered over 2,000 upvotes on Tesla's investor relations website.
Tesla, along with a few other companies like Robinhood Markets Inc., provides retail investors with the opportunity to pose questions to management. These queries are then addressed during the company's earnings call following the release of results.
Currently, the Tesla platform is flooded with hundreds of questions from shareholders, representing over 11 million shares, according to the company.
During the earnings call, Tesla executives address a select few of the top questions before giving investment-bank analysts their chance to delve into the discussion. Consequently, Tesla's calls tend to be longer than the average post-results call, often lasting more than an hour.
One of the most popular questions recently asked was: "Given that you moved the start of the next generation compact vehicle production to Austin, has the timeline improved so that we might see next generation platform vehicles in 2025?"
Although the Model 3 was initially hailed as Tesla's entry into the mass-market segment, its pricing does not entirely align with that notion. The base model starts at $38,900 for a rear-wheel drive and $45,990 for a long-range, all-wheel-drive variant.
While these prices hover around the average cost of a new vehicle in the United States, which is approximately $48,000, the promised $35,000 version of the Model 3 has yet to materialize.
In conclusion, Tesla's upcoming earnings day is generating anticipation and curiosity among investors. The focus remains on various aspects, from the company's projections and profit margins to its next vehicle, the highly anticipated "Model 2."
Tesla's Unfulfilled Promise
Investors eagerly awaited the arrival of a $35,000 version of the Model 3 from Tesla, but unfortunately, it never materialized. Back in March, Tesla and its CEO Elon Musk held an investor day, known as "Master Plan 3," to discuss the company's next-generation vehicle. However, the presentation fell short on providing specific details about the car.
During the four-hour event, Musk avoided addressing questions about the new vehicle's performance, design, prototype timeline, and production plans. The only insight shared by Tesla executives was the need for a complete revamp of their electric vehicle (EV) manufacturing process. Their objective was clear: to make the next-generation vehicles faster, more affordable, and more efficient with a smaller powertrain and lighter weight.
Furthermore, Tesla hinted that the new EV platform could serve as the foundation for multiple vehicles. This announcement left investors intrigued but still uncertain about what lies ahead.
Tesla is set to release its fourth-quarter results soon, with analysts expecting adjusted earnings of 73 cents per share on sales of $25.6 billion. In comparison, the company reported adjusted EPS of $1.19 on sales of $24.3 billion in the fourth quarter of 2022.
While Tesla's stock performance has experienced a rough start this year, dropping by 16% in the past month, it has seen an impressive 45% gain over the last 12 months. In contrast, the S&P 500 has only gained about 2% in January and around 21% in the past year.
In an effort to navigate ongoing challenges, Tesla has made strategic moves such as slashing prices in China and temporarily pausing production in Germany due to supply-chain disruptions and conflicts in the Red Sea.
Stay tuned for Tesla's upcoming earnings report, which will shed more light on the company's performance and future prospects.
