WionDrive News Desk 
Tesla is predicted to present the lowest gross profit margin in the last 6 years on Tuesday following a series of events in this past week that included a tough phase of layoffs, vehicle price cuts across the agenda, and investors’ demand for informing of the exact strategy of their products. The discussion after the release of the outcome would be similarly plagued with the concerns on the factuality of Model 2, a new low cost car whose introduction is planned for 2025.
According to an earlier Reuters report, Tesla appears to have a change of heart, and has chosen to cancel Model 2 which is a small car platform and will entirely devote to developing self-driving robotaxi. Many of the investors had bet on the good sales for the Model 2, and the poor development of Cybertruck production.
Graham Tanaka, a portfolio manager at Tanaka Growth Fund who was an early bull in Tesla shares, said he had liquidated the last of his position in recent days. He said, “The Model 2 was supposed to be the moat around their business model, but it’s been delayed at a minimum. We think there’s going to be more risk in owning Tesla next year because we don’t know how fast the Cybertruck will be ramping up.”
Not only did Tesla sales lower in the last quarter with 8.5% decrease in delivery and increase in inventories, but they also had stringent controls imposed on the vehicles when meeting the customers’ needs. Tesla has taken this step in order to compensate for the price cut of Model 3, Model Y, and other models world-wide, which in turn is likely to result in more slim profits. Experts seem to indicate that apparently the company would suffer a huge blow in delivery for 2024, transitioning from long history of robust double digit growth. Incidentally, from the very start of the year, Tesla was already forecasting that shipment growth would be significantly lower. Furthermore, considering that the lower price cuts might not do this, they may not be enough to stimulate demand.
