Multiple analysts have shared their insights on Tesla Inc.’s fourth-quarter earnings call, discussing various factors related to the Elon Musk-led automaker.
Gary Black Paints Mixed Picture
Gary Black of The Future Fund LLC expects Tesla shares to rise by 2-3% after the earnings call. He outlined that $20B CapEx and related margin pressures are negatives, as is the discontinuation of Tesla’s profitable S/X models. However, favorable comments from Tesla management about Robotaxi efforts, Optimus timelines, and strong 4Q EV auto gross margins remain positive factors.
$20B CapExp (and related margin pressures) is clearly a negative, as is discontinuation of TSLA’s profitable S/X models, but favorable comments from the Tesla management about the Robotaxi efforts, as well as factors like the Optimus timelines and “strong 4Q EV auto gross margins,” remain positive factors.
Ross Gerber Says It’s the End of an Era
Ross Gerber, co-founder of Gerber Kawasaki, called it the “end of an era” for Tesla as the company announced a shift towards autonomous vehicles. He shared that Tesla’s transition from manufacturing electric vehicles to a “transportation as a service” and humanoid robots revenue model would require “some time and a ton of money.”
- Energy storage is a great business along with charging.
- The transition from vehicle sales to this new transportation as a service and robots model will take some time and a ton of money.
Gene Munster Says Robotaxis Progressing Well
Investor Gene Munster of DeepWater Management centered his take around Tesla’s autonomous and Robotaxi exploits. He said that when companies take away and give metrics, it’s a read in terms of their confidence with the metric. Munster shared that Tesla’s confidence in the FSD system has led to the company announcing Robotaxi expansion into multiple cities this year.
- FSD is making more progress than people realize.
- The system had made a “remarkable improvement” over the past six-month period.
- Tesla’s decision to offer FSD subscriptions only would take auto margins down to 16%.
Conclusion and Price Action
According to experts, Tesla scores well on the Momentum metric and offers a favorable price trend in the Long term. TSLA jumped 2.01% to $440.13 during Overnight trading on Wednesday.
Key Takeaways
- Tesla’s fourth-quarter earnings call led to mixed reactions from analysts.
- Gary Black expects Tesla shares to rise by 2-3% after the earnings call.
- Ross Gerber called it the “end of an era” for Tesla as the company shifts towards autonomous vehicles.
- Gene Munster shared that Tesla’s FSD system is making progress and the company is expanding Robotaxi services.