- Q4 earnings and revenue miss
- AI prospects still underpin rating
Mixed messages within its Q4 release saw the share price of Tesla (US:TSLA) oscillate in after-hours trading on Nasdaq (which can run as late as 8pm Eastern Time in the US). Both revenues and earnings came up short of expectations in the quarter, but the investment narrative is still bound up with the promise afforded by artificial intelligence (AI) and robotics.
The market continues to respond positively to Donald Trump’s election victory in November, perhaps in expectation that Trump’s victory will result in favourable regulatory reforms, although that presupposes that cash flows won’t be overly constrained by the new administration’s roll-back of (electric vehicle) EV incentives.