Part 2/10:
Tesla's stock graph clearly shows a downward trajectory post-earnings, reflecting investor disappointment. Despite reporting an operating cash flow minus capital expenditure (free cash flow) of $3.3 billion—a figure that doesn't seem alarming on its face—the underlying issues soon became evident.
Primarily, the lack of improvement in automotive gross margins compared to Q2 stood out. Despite recovering from factory shutdowns and other pandemic-related restrictions, the margins remained stagnant, raising questions about underlying profitability. Investors wondered: if Tesla isn't increasing margins, what other factors are influencing the stock's decline?