Submitted by Rim_World t3_10ldjx7 in wallstreetbets
We got the Tesla earnings and Papa Elon cult is back at it with their "bers r fuk" posts.
I know we're all regarded here but just try looking into TSLA's actual Q4 earnings package.
Firstly it tells you everything you need to know about Tesla the company. It's all about marketing. That's the only thing Elon is good at... well mostly.
Numbers that matter are at the very end of the report after 8 pages of photos for you crayon eating monkeys.
TESLA IS AN AUTO MANUFACTURER! Even in their comparison charts that's what they compare themselves to. But what they don't compare is apples to apples. Automotive gross margin of Tesla is on a decline after a year where they had the highest prices before they had to cut prices at the end of 22 and beginning of this year.
With lower prices, their margin is going to drop even more. Now add a slowdown in economy to the mix where they will have lower demand, Tesla has probably just posted their best earnings for the next 4-6 quarters.
This is probably peak Tesla in this cycle. Now let's look at their cashflows. Tesla claims to have enough cash to get through the hard times. This quarter alone, they have used up 15% of their cash from end of Q3.
Tesla also has an increase in inventory which is not huge but not a great sign. If everything is going so great, we need to see the opposite.
TL:DR This is a warning post for those of you who think Tesla has dropped "enough." When you compare it with other auto manufacturers you see the disconnect. Sooner or later TSLA will be valued just like other auto manufacturers. With limited growth while burning through cash, TSLA is a hold at best and a sell IMO.