Finimize - 🪫 Tesla’s out of battery

Hi Reader, here's what you need to know for January 4th in 3:11 minutes.

📊 “Fail to prepare, prepare to fail,” says the old adage. So join Carl Richards and Helena Wardle for Wealth Building Habits next Wednesday, and find out how a little planning and polishing can help secure your financial future. Get your free ticket here

Today's big stories

Tesla’s quarterly deliveries hit a new record, but still came in below expectations
Here are the three big questions you’ll face this year – Read Now
The TV content spending boom might be on its last legs

New Year, Same Musk

What’s Going On Here?

Tesla announced over the weekend that it stalled last quarter, meaning Musk might have to go back to the drawing board this year.

What Does This Mean?

The control panels in Tesla HQ were probably flashing red as 2022 drew to a close – including the critical “Demand” meter, whose needle seemed to have slipped pretty far into the red zone. That drop could be why the firm took the unusual move of offering bumper incentives in its two biggest markets, the US and China, but it seems that was too little, too late. Sure, deliveries swelled 11% from the previous quarter to hit a record high of over 405,000, but they still fell short of the 421,000 analysts were expecting. That brought 2022’s deliveries 40% above the previous year’s – a far cry from the 50% average annual growth rate the company’s been crowing about.

Why Should I Care?

Zooming in: Build it and they won’t come.
There’s never a good time for demand to slip, but you certainly don’t want it to happen shortly after opening two new plants. That extra factory space helped Tesla ramp up production, meaning it's now made more cars than it's delivered for three straight quarters. But over-manufacturing is hardly a sustainable business model in the current economy, and analysts reckon the company has two options: cut growth targets or double-down on price cuts – and neither prospect will appeal to the EV giant or its investors right now.

For markets: Down but not out.
Tesla’s current trajectory – paired with Musk’s distracted Twitter antics – might explain why the EV manufacturer’s stock plunged nearly 40% in December alone. The firm even notched its worst daily drop since 2020 on Tuesday after the dismal deliveries news. Still, investors have far from abandoned the titan. After all, even after the drop, its price-to-earnings ratio – a key valuation metric – is still around five times that of rivals GM and Ford, reflecting the much greater speed that Tesla’s expected to grow at.

You might also like: Why Tesla’s stock might actually be a little too low at this price.

Copy to share story: https://go.finimize.com/wp/news/hit-the-curb/

🙋 Ask a question

Analyst Take

Goldman’s Got Three Really Big Questions For Investors

By Luke Suddards, Analyst

Goldman Sachs’ top-notch US economics team has come up with the ten most important questions facing investors this year.

But they include some pretty in-the-weeds stuff.

So I’ve plucked out what I think are the three most important questions – and their answers – to give you an idea of what to expect in 2023.

That’s today’s Insight: the three burning questions facing investors this year.

Read or listen to the Insight here

Finimize x Revolut

Pretty good stuff, right? Our analysts write Insights like this every day, and you can read every single one of them with Finimize Premium.

There’s no better time to get started: our new partnership means you can get six free months of Finimize Premium and three free months of Revolut Premium if you sign up for Revolut today.

We’ll even send you £10 (or equivalent) to your Revolut account to get you started.

Our community wants to know your name

Building a good brand is hard work.

So if you’re proud of the work you do, you best make sure everyone knows about it.

You could start by introducing yourself to our one-million-strong community: they’re a global bunch of switched-on, savvy retail investors who want to take their investing skills up a notch.

And if your tips, tools, or platform – plus whatever else you have up your sleeve – could help them do that, then this might be just the right spot for you to show off what you have to offer.

Make sure everyone knows your name: introduce yourself to over one million retail investors.

Get In Touch