Tesla Faces Growth Slowdown as Model Cycle Transitions, Raises Questions About Future Vehicle Platform

Benzinga 2024-01-25

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Tesla is confronting a common automotive challenge—the model cycle—resulting in a growth slowdown as it transitions from the success of its Model 3 and Model Y to a future boost anticipated from a new vehicle platform expected in the latter half of next year. However, CEO Elon Musk's history of optimistic timelines casts uncertainty on this projection. Tesla anticipates lower vehicle volume growth this year without specified targets, yet reports improved profitability with an 8.2% operating margin aligning with industry standards.

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