Tesla, very similarly to Berkshire Hathaway, likes to release parts of their company results on the weekend as opposed to a business day. Last time, Tesla reported some outrageous results regarding their car deliveries in the previous quarter, setting a new high in deliveries and crushing expectations even with the chip shortage at its worst. This often leads to a rally the next trading day for the stock, and right now that would be crazy as Tesla is already up by a lot in the last few days due to a stock split announcement. However, it looks like Tesla is heading for a cooldown instead.
In abnormal fashion, Tesla under delivered during the first quarter of 2022 as reported on Saturday. Tesla delivered 310,000 vehicles in the first 3 months of this year, falling under the expectation of 317,000, although it still rose. Unfortunately, it was mostly a flatline from last quarter, barely rising from 308,000. Elon Musk tweeted that the quarter was extremely terrible as the supply chain problems caught up and China’s COVID lockdowns shut down factories, but thanked employees for keeping Tesla afloat. The Model 3 and Model Y were once again the most popular models, and the China plant produces these models, which shows the problem right there. However, their Germany plant is starting to produce cars, and the Austin factory will follow suit in the coming months. Tesla has now come to face the industry problems, but analysts expect their deliveries to continue growing this year.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.