Tesla - Still a hyper-growth company?

However as we all know post results, stock prices tank

So what should investors know?

If sales can grow without price cuts, Tesla would not have needed to do price cuts.

And when price cuts are done, margins are almost more than certain to be sacrificed.

Yes, automotive revenue grew 46% YoY.

But it was all due to price cuts to stimulate purchases. The gross margins, operating margins, and adjusted EBITDA margins are clear signs that Tesla willingly sacrificed its margins to maintain revenue growth.

The problem is, Apple is a pure tech company with no manufacturing facilities.

Tesla, on the other hand, owns gigafactories that will be bleeding away money and cash if no cars are being produced.

I would guess that due to the uncertainty of the mass public in terms of discretionary spending, Tesla had no choice but to shave off its selling price, and yes to sacrifice some margin upfront to at least keep its plant running.

An empty plant would have been far more disastrous.

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