Yahoo Finance Tesla (TSLA) Addresses Crucial Topics in Shareholder Meeting
Tesla, Inc. TSLA, at its recently held annual shareholder meeting, announced that it is geared to deliver its most-awaited first Cybertruck this year. Per Tesla’s CEO, Elon Musk, as soon as the truck enters the production stage, the auto giant will deliver around 250,000 to 500,000 trucks per year.
Musk also hinted that the economy will remain sluggish for the next 12 months. During economic stagnancy, consumers’ discretionary spending is usually down and Tesla will not remain untouched by its impact. Nevertheless, it remains well poised for growth in the long haul.
The shareholders of Tesla have voted to appoint JB Straubel, CEO of Redwood Materials and former chief technical officer of Tesla, to the company’s board of directors. Straubel discontinued working with the auto giant in 2019 to start a battery materials recycling company.
Tesla is working toward launching a new drive unit that will require less silicon carbide compared with prior drive trains and no rare earth elements. TSLA will also switch to a new, low-voltage architecture in its cars that will use less copper.
Musk admitted that Tesla is open to giving mainstream advertising a try. Since its inception, the EV pioneer has relied on word of mouth and non-traditional methods for marketing its products. Musk also denied the rumors of stepping down from his position as CEO of the company.
Starting this year, Tesla offered steep discounts on its models in the United States, China and elsewhere to spur demand, leading to year-over-year growth of 24% in its first-quarter 2023 revenue. The automaker is riding on robust demand for Models 3 and Y, which form a major chunk of its total deliveries.
The Model 3 and Y registered production and deliveries of 421,371 and 412,180 vehicles, respectively, in the first quarter of 2023, marking year-over-year growth of 45% and 40%, respectively. Management sticks to its target of around 50% delivery growth in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
At the shareholder meeting, Musk added that he expects the Model Y to be the top-selling car worldwide this year.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, BYD Company Limited BYDDY and Wabash National WNC, all of which sport a Zacks Rank #1.
Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimates for GELYY’s 2023 sales and earnings imply year-over-year growth of around 57.5% and 22.82%, respectively.
BYD is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales calls for year-over-year growth of around 209.6%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 19.7%, respectively.
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