Let me say that financial stuff is not what this site is about — it’s a technical site — but I decided to post this because of the amount of FUD that is out there.
The two big FUD items are:
- Tesla’s operating margin is dropping
- Tesla is losing market share
They are both true but they should not be viewed as bad things. They should not suggest that Telsa is about to go out of business. Here’s why.
Tesla is growing fast. It expects to meet it 2023 goal of delivering 1.8 million cars. Unlike other auto makers with lots of debt, Tesla has $23.1 billion in cash, having increased that by $700 million in Q2. Unlike GM, Ford, … Tesla makes money on each car it sells.
Saying Tesla is losing market share leaves out the fact that the total size of the market continues to grow. Here are their sales by year.
It is very likely that the Tesla Model Y will be the best selling car in the world in 2023. I said car, not EV. Sure, to get there Tesla’s operating margin dropped a bit but it is higher than most auto manufacturers.
Right now most of its sales are from only two products, the Model 3 and the Model Y. By the end of this year the Cybertruck will be getting sold with the “Model 2” to follow a year later. Tesla is on-track. If anything, now is the time to buy, not sell your Tesla stock.