an article is talking about tesla, a car company, having some problems with money because of a special deal they gave to people in china. this deal lets people buy tesla cars with zero percent interest for a certain amount of time. but an expert thinks this deal will make it harder for tesla to make money in the next few months. so, tesla might have to change how they do things to make more money. Read from source...
These critics find the article title itself 'horror show', a click-bait designed to attract more readers. They criticize the article for its lack of proper context, citing that Tesla's profit margins have been under pressure due to the zero-percent financing plan, but ignoring the positive impact it had on Tesla's sales volume. The critics also argue that the article relies heavily on opinions from a single bearish analyst, who seems to have a negative view on Tesla, without presenting counter-arguments from other experts. Some critics even label the article as 'misleading' and 'unprofessional'.
Bearish
The zero-percent financing option for Tesla's Model 3 and Model Y in China until the end of Q3 is seen as a negative development for the company's margins. Analyst Gordon Johnson of GLJ Research believes this move could indicate a serious demand problem in China for Tesla.
1. Tesla (TSLA) - Risk: The extension of zero-percent financing in China could create margin pressure and lower-than-expected earnings for Q3. Consider limiting exposure to TSLA until further developments occur.
2. GLJ Research - Analyst: Gordon Johnson - Risk: Johnson's bearish outlook on Tesla's Q3 margins based on the extension of zero-percent financing in China. Verify other reputable sources and cross-check data before making investment decisions based solely on Johnson's commentary.
3. Zero-percent financing extension in China - Risk: Lower demand or increased margin pressure for Tesla. Monitor developments in China's electric vehicle market to gain a comprehensive understanding of potential risks and opportunities.
### Information Source:
'Horror Show' For Tesla's Q3 Margins, Says Analyst, As Elon Musk-Led Company Extends Zero-Percent Financing To End Of Q3 - Benzinga