Workflow
Autonomous networks
icon
Search documents
Cathie Wood May Be Trimming Her Tesla Stake, But She Still Thinks the Company Is on Track for 70%-80% Gross Margins
Yahoo Finance· 2026-01-20 17:17
Group 1 - Cathie Wood is reducing her Tesla stake while maintaining high expectations for the company, projecting 70%-80% gross margins driven by robotaxis and software [1] - Tesla is facing challenges with declining sales in key European markets, price cuts affecting profitability, and increased competition from Chinese brands [1][2] - Despite these challenges, Tesla has improved its ranking in a major annual automaker survey, indicating strong brand strength and technological advantage [2] Group 2 - Tesla's market value is approximately $1.46 trillion, with a share price of $427.05 as of January 20, reflecting a year-to-date return of -5.4% and a 52-week decline of -0.25% [4] - The company trades at a high trailing P/E of 302.46x and a forward P/E of 255.11x, significantly above sector medians of 16.74x and 18.18x [5] - In Q3 2025, Tesla reported an EPS of $0.37, missing the consensus estimate of $0.41, indicating a -9.76% negative surprise, while quarterly sales reached approximately $28.1 million, showing a year-over-year growth of 24.89% [6][7]