Is Tesla a Buy After Its Latest Earnings Report?
Shares of Tesla (NASDAQ:TSLA) slipped on Thursday as investors digested the company’s third-quarter earnings report. And those results were clear — despite improved free cash flow, Elon Musk’s ambitious plans for artificial intelligence and robotics aren’t doing much to help the company’s bottom line.
Tesla shares were down more than 1% in morning trading following the earnings report, which showed another quarter of year-over-year shrinking operating margins.
The market’s reaction highlights a significant problem. Under Musk’s leadership, the company is spending billions of dollars developing autonomous vehicles, humanoid robots, and AI technology, but its earnings are heavily dependent on its automotive business.
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