Tesla Bull Suggests EV Giant Break Out AI Revenue And Profit As 4th Segment In Earnings Reports To Grab More Investor Eyeballs
A Tesla bull recently proposed a game-changing strategy for the electric vehicle giant to potentially attract more investor attention. Currently, Tesla’s earnings reports consist of three segments: automotive, energy, and services. However, the introduction of AI as a fourth segment could revolutionize how investors view the company’s full-self-driving (FSD) project and other AI initiatives.
The addition of an AI segment would allow investors to better measure, track, and analyze Tesla’s AI ventures, such as FSD licensing, robotaxis, Optimus, and Dojo. The analyst and Tesla bull behind this idea believes that breaking out AI revenue and profit separately could lead to a higher valuation for Tesla.
In addition to the AI segment suggestion, the Tesla bull addressed the recent speculation surrounding the company’s stock price increase. While some attributed the rise to the positive reception of Tesla’s new FSD version, the bull emphasized that stock prices are primarily influenced by increased earnings and cash flow.
The announcement of impending price hikes in the U.S. and European markets was identified as a significant factor in driving Tesla’s stock price up. Tesla plans to raise the price of its popular Model Y SUV in several European countries and increase the starting prices for all Model Y variants in the U.S. This move is seen as a positive development that could potentially boost Tesla’s delivery volume for the first quarter, improving earnings and auto gross margins.
Despite being a long-term Tesla investor, the bull recently reduced Tesla holdings due to a decline in the company’s long-term earnings power. The Future Fund Active ETF, which holds Tesla shares, has dropped the company to the 15th largest position.
Overall, the suggestion to introduce an AI segment in Tesla’s earnings reports represents a potential game-changer that could enhance investor interest and valuation for the EV giant.
