Why Roth Capital Downgraded Tesla to Neutral

The transcript discusses Tesla's market challenges, including risks of new vehicle delays and sales cannibalization by Model 3. Craig Irwin from Roth Capital Partners explains his stock downgrade due to market perception and earnings. Tesla's margin issues are attributed to rising battery costs, with limited visibility on cost reduction. Leadership changes at Tesla are also addressed, with confidence in the engineering team's capabilities.

What is one of the major risks Tesla faces according to the transcript?

• Decreasing demand for electric vehicles

• Increasing competition from other electric vehicle manufacturers

• Potential delays in new vehicle launches

• Lack of innovation in battery technology

What was Craig Irwin's stance on Tesla's stock before the earnings report?

• He recommended selling the stock

• He thought the stock was overvalued

• He was neutral about the stock

• He believed the stock was undervalued

What percentage of Tesla's vehicle cost is attributed to the battery?

• 30%

• 20%

• 40%

• 50%

What is the expected range of battery price increases this year?

• 1% to 5%

• 5% to 15%

• 10% to 20%

• 15% to 25%

How does Craig Irwin view the change in Tesla's leadership?

• He is concerned about the impact on operations

• He is confident in the engineering team's ability to adapt

• He believes it will lead to a decline in innovation

• He thinks it will cause a drop in stock prices