My TSLA Outlook - post new Twitter CEO
$Tesla (TSLA.US)$ After Elon announced he'd hired a new CEO for Twitter, I haven't changed my perspective on Tesla! I'm still sticking to my long-term DCA investment in the company as I’d think the key man risk is reduced significantly (after the removal of the “controversial” Twitter mayor role).
For folks who've invested in Tesla, Elon taking over Twitter (last year) and becoming its CEO has brought some uncertainty, mainly due to two reasons. Firstly, Musk offloaded Tesla shares a few times last year, seemingly to fund his Twitter purchase and ensure Twitter had enough cash to keep running.
In March this year, Elon claimed that Twitter could break even in terms of cash flow by the second quarter of 2023. If that happens, it will reduce the chance of Elon needing to sell more Tesla shares. Secondly, there were worries that Elon being the CEO of Twitter would distract him from Tesla. But if the new CEO starts at Twitter as per Elon's timeline, this uncertainty should lessen.
Now that the Twitter-related concerns about Tesla are starting to fade, I believe the market will turn its attention back to Tesla's ability to increase its volumes and regain its profits. Tesla's price cuts have resulted in record deliveries, but they've also put a dent in their profits, where its automotive gross margins slid to 21% in the first quarter, down from 33% in the same period in 2022.
In the short term, I expect Tesla's automotive gross profits to stay in the low-20% range. However, looking ahead, I foresee a return to the average 29% margin seen over the past two years by 2030, as Tesla starts to put its cost-reduction plans into action.
Let’s not forget the incoming CyberTruck later this year ![]()
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dabaoguo : Tesla is a great company. Will go back to $200+
RDK79 : Solar, Cybertruck, semi’s, robocomuter, new low cost EV, cellphone, and who knows what’s next…. 250 :)
Ziet Invests OP dabaoguo : fingers crossed!
Ziet Invests OP RDK79 : such exciting future! forefront of tech, energy and AI…just incredible
Kiel890 dabaoguo : Yes，he will，looking forward to his performance next Monday，at what price did you currently enter TSLA？