Oct 30, 2019

Tesla's global aspirations are dividing the markets

Data: Investing.com; Chart: Axios Visuals

Tesla’s third-quarter revenue fell by $2 billion, or almost 40%, in the U.S., a regulatory filing released Tuesday showed, the company's first drop in more than two years.

Worth noting: However, sales outside the U.S. jumped, with China sales growing 64% to $669 million.

The big picture: Tesla is sacrificing sales of its higher priced vehicles and in higher value markets like the U.S. to focus on growing its low-cost Model 3 and increasing market penetration in China.

  • Critics say this will destroy Tesla's thin profit margins, while Tesla bulls argue it will boost scale and make the company a household name worldwide.
  • The stock has risen more than 30% this month, but is less than 2% higher than its price at the start the year.

What they're saying: “Musk & Co. are laser-focused on Europe and China for growth, while domestically, core demand is fading relative to other regions,” Wedbush analyst Dan Ives told CNBC, adding that U.S. growth will remain more challenging going forward.

Yes, but: Analysts at Roth Capital on Tuesday downgraded Tesla shares to sell, calling the company's margins "unsustainable." They note that the Q3 filings shows warranty adjustments and other one-time items were "a large driver of perceived strength" in Tesla's Q3 earnings report that resulted in the stock's big gains.

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Elon Musk announces new Tesla factory in Germany

Photo: Yichuan Cao/NurPhoto via Getty Images

Tesla CEO Elon Musk announced Tuesday that the electric automaker's planned European factory will be located near Berlin, Germany.

Driving the news: It marks the Silicon Valley electric automaker's second international plant, joining a recently launched facility in China.

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Tesla to debut its long-awaited electric pickup truck

Tesla will take the wraps off its long-awaited pickup truck in Los Angeles Thursday night.

Why it matters: Pickups are enormously popular with U.S. consumers, but Tesla will have competition in this space even if electric trucks become a thing. Ford and GM are also both working on models, too.

Go deeperArrowNov 21, 2019

Tesla ushers in the electric pickup moment

Photo: Tesla

Tesla unveiled its futuristic "Cybertruck" at an L.A. event on Thursday that was heavy on light shows, yet analysts remain in the dark about the future of electric pickups — and Tesla's role in it.

Why it matters: The event was the splashiest sign yesterday that automakers are moving closer to bringing electric models to the huge pickup market.