Neon illuminated Tesla car front
Tesla shares have lost 42% so far in 2024 / Image source: Adobe
  • Lowest profit margins in four years predicted
  • Electric vehicle maker appears to have ditched its low-cost model plans
  • Stock has fallen 42% this year

Mega tech earnings kick-off this week with Tesla (TSLA:NASDAQ) set to get the ball rolling after the market close Tuesday (23 Apr), and the results and commentary are likely to be bleak.

The electric vehicle giant earlier this month reported an 8.5% decline in deliveries and rising inventories, and only this week announced the latest in a series of price cuts globally, further eating into margins, as well as staff major layoffs.

It may be the world’s most valuable automaker but it is expected to post its first revenue drop and lowest gross margin in nearly four years, according to LSEG data.


The automaker could also face questions about its future strategy, especially after Reuters reported earlier this month that it had scrapped plans for the so-called Model 2, a low-cost vehicle, and would focus on building a self-driving robotaxi on the same small-car platform. 

Its valuation has historically been based largely on hopes for mass-market EV sales and breakthroughs in self-driving vehicles.

Investing in robots: why now could be the right time

Investors will also be looking for news regarding its latest model, the Cybertruck, seeking guidance on whether Musk maintains his goal of producing 200,000 of these vehicles in 2025 despite struggling to mass-produce its newer 4680 batteries, which Tesla needs for the Cybertruck and hoped to deploy in other models to reduce costs.

At the current $142.05, Tesla shares have lost 42% of their value so far this year.

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Issue Date: 23 Apr 2024