Tesla’s Cure for Musk’s Missteps Is More Musk
Given the company’s dismal numbers, a MAGA-gram was the last thing investors wanted to hear.
Given Tesla’s dismal numbers, a MAGA-gram was the last thing investors wanted to hear.
Photographer: Brendan Smialowski/AFP/Getty Images
Tesla Inc. reported abysmal numbers for the first quarter on Tuesday evening. Naturally, Chief Executive Officer Elon Musk kicked off the call with a discussion on why he must fix America’s finances, facing down an army of alleged moochers.
For any other company’s stock, the combination of these results with Musk’s political priorities would spell doom. The closely watched metric of Tesla’s automotive gross margin, after stripping out sales of regulatory credits, slumped to 12.5%; the lowest, according to Morgan Stanley, in over a decade, when Tesla was still more of a startup. Adjusted earnings came in almost 40% below a consensus forecast that had been nosediving anyway. Tesla eked out positive free cash flow, but only through a combination of favorable moves in accounts payables and receivables, and by slashing capital expenditure almost in half.