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Tesla had results out last week, which looked pretty good to me. The market thought differently, and the stock price fell 10% on Thursday. To be fair, the stock has had a good year. The all-time high price was reached in late 2021, followed by a nasty slump in 2022, and a surge in 2023.
The electric-vehicle maker reported record production of 480 000 cars and record sales revenue of $25 billion. Operating profit was about $2.4 billion, 3% lower than in the same period last year.
Investors were prepared for weak profits because of Tesla's recent price cuts. The entry-level Model 3 now costs just over $40 000 in the US, which is 14% cheaper than it was at the start of the year.
Tesla has a dominant position in the electric vehicle market. If they don't hit two million vehicles in 2023 (their goal) it will be close. In the years ahead they will hit much higher numbers.
I spent time in Europe recently, and there were Teslas everywhere. I'd love to own one and drive it here in Joburg, but they are not available in this country yet. Given the state of our roads, perhaps it would be best to own a Tesla Cybertruck?
Vestact has 819 clients that own Apple, and only 368 who own Tesla. It's seen as a riskier play, and not everyone loves Elon Musk. However, I think it's one of the most attractive investment opportunities out there. If you want to buy some, or add to your existing holding, let us know.
