Tesla Q1 margin under radar following price cuts - Citi
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Tesla's (NASDAQ:TSLA) recent price cuts will put even greater emphasis on the EV maker's gross margins for Q1, suggests Citi analyst Itay Michaeli.
Tesla is set to report its Q1 numbers next week. The current consensus EPS estimate is $0.86 and revenue estimate is $23.46B.
A stronger-than-expected result would indicate a "position of cost strength" and potentially lower input costs, but an in-line or lower outcome for Q1 would suggest over-capacity or product aging, putting the 2023 consensus estimates at risk, wrote Michaeli in a note.
He further adds that markets have not yet priced in the latter scenario, "making for a less than compelling risk/reward into the quarter under the current macro backdrop."
The Austin, Texas-based firm cut prices of all of its models in the U.S. models late Thursday. This marked the second broad-based U.S. price cut of all models this year and the fifth move to cut prices, Reuters reported.
TSLA shares have gained over 71% YTD but are down 43% over the past year

In other news, Tesla (TSLA) plans to build a new battery manufacturing facility in Shanghai.