Tesla skids 10% as investors eye the market share vs. profits tradeoff
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Tesla (NASDAQ:TSLA) ended trading on Thursday with a 9.75% decline and settle at its lowest close since late January. Volume on the day was over 209M shares.
The Tesla (TSLA) earnings call generated a lot of interest with analysts as Elon Musk and other top execs made it clear that market share gains may be a priority over near-term profit (read a summary of the conference call highlights).
Oppenheimer analyst Colin Rusch said the TSLA story appears to be transitioning as the company reaches higher delivery volumes and prepares for an electrified, autonomous future. "Its sales strategy has shifted from optimizing near-term CF to maximizing long-term profitability per customer," he noted.
Elsewhere on Wall Street, a downgrade was fired off on the EV stock by Tudor, Pickering, Holt & Co to Sell from Hold.
Seeking Alpha analyst Cavenagh Research weighed on on Tesla (TSLA), saying the volume strategy could be value-accreditive in the long run, taking into consideration the push for higher post-purchase revenue. The bear case was highlighted by Seeking Alpha Ironside Research.