Tesla Inc (TSLA)

[boston745]

“In short, this is an utter disaster (both the result/cash-burn, and the guide/abandonment of the next-gen platform); stated differently, for the TSLA bears, Christmas just ‘came early,'” he said.

He sees Tesla abandoning the low-cost, next-gen platform and resorting to “de-contenting” existing models. He considers this a “huge letdown.”

Johnson further criticized Tesla’s record cash burn in the first quarter, with a negative free cash flow of $2.53 billion, far below estimates and marking the company’s worst quarter ever in this metric. He also highlights a drop in operating margin from 8.2% to 5.5%, missing analyst expectations and significantly lower than the global auto industry average.

“This is a catastrophe, as this puts TSLA's op. margins in line/worse than the global auto industry,” he said.

Johnson also said Tesla’s revised 2024 growth target is “notably lower” than the previously announced 50% growth projection

https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38398667/tesla-bulls-praise-musks-q1-earnings-call-see-ev-giant-on-collision-course-with-ube