Bloomberg Intelligence:Tesla Does Not Fully Disappoint (Podcast)

Tesla reported a 13% decline in vehicle sales, delivering 384,122 units, a result that was less severe than the over 20% plunge many analysts and investors had anticipated. This better-than-feared performance, highlighted by Bloomberg Intelligence, indicates that the company avoided a more significant disappointment in its recent sales figures.

Analysis

Tesla, Inc. (TSLA) reported a 13% decline in vehicle sales for the last quarter, delivering 384,122 units. While negative on an absolute basis, this figure significantly surpassed bearish market expectations, as some analysts and investors had anticipated a much steeper plunge of over 20%. This "better-than-feared" result, as highlighted by New Street Research, has led to a positive relative sentiment for the stock, suggesting that the most pessimistic scenarios may have been overly discounted by the market. In contrast, the report also highlighted negative secular trends for AT&T (T) and Verizon (VZ), whose wireline sales are reportedly suffering from technological shifts and business cannibalization, reinforcing concerns about their legacy operations.

Key Decisions for Investors

• For Tesla (TSLA), the key takeaway is that the company has cleared a very low bar of expectations, which could provide short-term support for the stock despite the headline sales decline.
• Investors should scrutinize upcoming management guidance to ascertain whether this delivery beat marks a turning point in demand or simply a one-off outperformance against deeply negative sentiment.
• The commentary on AT&T (T) and Verizon (VZ) reinforces a cautious stance on their wireline business segments, prompting a need to evaluate exposure to these legacy assets facing structural headwinds.