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# Tesla: Gross Margins May Have Bottomed Out (Archive)
- URL: https://www.huntingalphas.com/tesla-gross-margins-may-have-bottomed-out-archive/
- Published: 2024-08-02T15:31:00.000Z
- Updated: 2026-02-27T11:40:38.000Z
- Description: Tesla’s gross margins face supportive commodity trends but valuation and technicals temper enthusiasm.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, Consumer, TSLA

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Tesla, Inc. has outperformed the market since my last “Neutral/Hold” update. However, I believe this is temporary. I maintain my earlier stance:
- The input commodities outlook is favorable. Many of Tesla's raw material markets such as lithium, nickel, cobalt, and graphite are in a state of oversupply with a dampened price outlook.
- Tesla's revenue mix shift away from automotive and toward the energy business is another accretive factor to gross margins.
- The recent run-up in prices seems to be driven by multiple expansion rather than expectations of earnings growth. I doubt the sustainability of this amid the higher-for-longer rates narrative.
- The relative technicals also point toward a negative to neutral outlook for Tesla vs. the S&P 500.

Read the full article [here](https://seekingalpha.com/article/4709739-tesla-gross-margins-may-have-bottomed-out?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*