As Tesla Inc. shares were down 7% premarket Thursday in the wake of earnings, numerous analysts saw silver linings. Yes, Tesla
fell short of expectations late Wednesday with its third-quarter automotive gross margins, and the company posted an earnings shortfall that marked its “first bad miss in three years,” according to Evercore ISI analyst Chris McNally. The electric-vehicle maker also sounded a more careful note on 2024 given the economic climate and complexities around the Cybertruck rollout.
Opinion: Tesla’s Cybertruck has Elon Musk sounding unusually cautious But is Wall Street “missing the forest for the trees”? Perhaps so, wrote RBC Capital Markets analyst Tom Narayan. “Investors will likely focus their attention on the cautious commentary on 2024 and on the potential delay of the Next Gen product, but we suspect this could be all part of a master pivot from being a volume car maker to becoming a Tier 1 supplier to [original equipment manufacturers],” he wrote in a Thursday report. “Tesla’s cars can still be a proof of concept and make money on selling [Full Self-Driving] subscriptions, but we think selling power electronics, batteries, charging, and ultimately FSD, could be far more profitable.” Narayan reiterated his outperform rating on Tesla shares, even as he acknowledged that consensus expectations for 2024 deliveries could come down before the next report. He cut his price target on the s …