ANDIKA BULLETin 24 APR 2024

ASX Preview: ASX 200 Futs up 27 and as tomorrow is ANZAC Day there will be no BULLETin and the ASX will be closed.

Overnight. US mkts did ok overnight but everyone was waiting for the Tesla results to drop after mkt.

The TSLA print was ugly. Here's what they reported.

• Q1 Revenue $21.3BN, down 9% YoY, and missing estimates of $22.3BN
• Q1 Adj EPS 45c, down 47% YoY, and missing estimates of 52x
• Q1 Operating income $1.17BN, down 56% YoY and missing estimates of $1.53BN
• Q1 Automotive Gross Margin Ex-Regulatory Credits 16.4%, missing estimates of 17.6%
• Q1 Free Cash Flow -$2.53BN, vs +$441MM YoY and missing estimates of +653.6MM

And while the disappointing results would likely have been enough to hammer the stock even more after hours, TSLA is soaring due to these four paragraphs in the company's "product outlook" section, which promise what everyone has been hoping for: cheaper cars are coming and sooner than expected.

We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025.

These new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms, and will be able to be produced on the same manufacturing lines as our current vehicle line-up.

This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times. This would help us fully utilize our current expected maximum capacity of close to three million vehicles, enabling more than 50% growth over 2023 production before investing in new manufacturing lines.

Our purpose-built robotaxi product will continue to pursue a revolutionary “unboxed” manufacturing strategy.

And so, with the stock having cratered in the past week, sliding for a record-matching 7 consecutive days, the market is finally happy with what Musk revealed and the stock is sharply higher after hours, surging some 6% and erasing the 4 most recent days of losses...

So the weakest link in the Mag 7 is getting a pump. If the other 6 of the 7 beat then we could see a new bull run in the SP500.

Happy Wednesday!

This information contains unsolicited general information only, without regard to any individual’s investment objectives, financial situation or needs. It is not specific advice for any particular investor or trader. Investment in the stock market involves risk.

This information may not take into account your investment objectives or financial situation, and you should obtain advice based on your own individual circumstances before making an investment decision.

This information is made available to you by ANDIKA Pty Ltd ABN 41 117 403 326, a licensed securities and derivatives dealer (AFSL # 297069).