If Tesla accomplished the result by cutting prices, revenues and profit margins could fall short of investors expectations.
Tesla reported expectations-beating deliveries in its second quarter. The implications of this result for investors depend on how Tesla achieved those deliveries.
If Tesla — 3.5% of its shares are sold short, according to the Wall Street Journal —accomplished the result by cutting prices, revenues and profit margins could fall short of investors’ expectations.
If that happens, Tesla’s stock price could fall — unless it raises its guidance for the third quarter.
In the meantime, on July 2 an influential analyst said the expectations-beating delivery numbers would burn Tesla bears.Tesla’s Expectation’s Beating Second Quarter Shipments
Were the expectations-beating deliveries due to price cuts? Piper Sandler senior research analyst Alexander E. Potter wrote in a June 26 note Tesla prices were “stable” in the second quarter.
Tesla did engage in some price cuts during the quarter.
