The Biggest Bombshell in Tesla's Earnings Report
The market hasn't been particularly happy with Tesla's (NASDAQ: TSLA) third-quarter 2022 earnings report, released last week. The company continued to grow, but margins were down, and results didn't meet analyst expectations. That situation generally leads to a falling stock price.
What stuck out in the report was a long discussion about Tesla's inventory and how it's changing delivery practices in the future. Management acknowledged that they've been rushing deliveries at the end of the quarter to maximize revenue and earnings, which has hidden some of the inventory building during the quarter. As that will change in the future, some red flags are emerging.
Image source: Tesla.
Source Fool.com
