Tesla on Wednesday managed to please anxious investors by posting a smaller-than-expected loss and burning less cash than Wall Street had anticipated. But also fuelling the rise was an apology from CEO Elon Musk himself to analysts he had previously interrupted for “boring” and “boneheaded” questions – and the apology could have affected the stock more than you might expect. “Elon’s tone was generally improved vs. last quarter, which may seem trivial, but TSLA stock has become somewhat of an Elon sentiment gauge,” RBC Capital Markets analyst Joseph Spak told clients in a note Thursday morning. Spak attempted to ask Musk about Model 3 cancellations on Tesla’s first-quarter earnings call, but was cut-off in favour of a question from YouTube. Personality cult aside, Spak says Tesla’s earnings on Wednesday leave some questions in his mind, but were in no doubt “a better quarter” with “a number of … [Read more...] about Tesla’s stock has become an ‘Elon sentiment gauge’
Tesla
Tesla shares jump after cash burn worries abate, Musk apologizes to…
(Reuters) - Shares of Tesla Inc jumped 10 percent in premarket trade on Thursday, after the company convinced investors that it was able to produce positive cash flow and turn a profit, and Chief Executive Officer Elon Musk apologized for past incendiary remarks. Elon Musk speaks at a Boring Company community meeting in Bel Air, Los Angeles, California, U.S. May 17, 2018. REUTERS/Lucy Nicholson Musk in a conference call on Wednesday, addressing the company’s largest quarterly loss to date, said the electric car maker would not need to raise more cash and that capital expenses would be slightly below $2.5 billion in 2018, lower than most analysts’ estimates. But it was his remorse for prior remarks to analysts that highlighted the call. Previously, he insulted some analysts - turning off investors and shareholders, and knocking $2 billion off the company’s market cap. “I would like to apologize for being impolite on the prior call. Honestly, I think … [Read more...] about Tesla shares jump after cash burn worries abate, Musk apologizes to…
Tesla rally; Stocks slump on trade fears; CBS earnings
1. Tesla rally: Shares in Tesla (TSLA) are surging 8% premarket as investors express relief that the company's big quarterly loss wasn't as bad as expected. Tesla reported its largest quarterly loss in its history on Wednesday and burned through $430 million in cash over three months. The electric carmaker said it lost more than $717.5 million in the second quarter. But its cash burn rate was less than investors expected, and the company had $2.2 billion in cash at the end of the quarter. 2. Trade scare: The latest flare up in global trade tensions is hitting China's stock markets. The Trump administration announced it is considering more than doubling tariffs on an additional $200 billion worth of goods from China. US tariffs could be set at 25% instead of 10%. The main Shanghai Composite index fell 2% as investors reacted to the threat. The Hang Seng shed 2.3% and the Shenzhen Composite dropped 2.4%. Data released this week suggested that the Chinese economy is already … [Read more...] about Tesla rally; Stocks slump on trade fears; CBS earnings
Cash-guzzling Tesla on way to big loss
Electric-car maker Tesla Inc. burned through $739.5 million in cash last quarter, paving the way to a company record $717.5 million net loss as it cranked out more electric cars. But Tesla reiterated a promise from CEO Elon Musk to post net profits in the third and fourth quarters, and Telsa's shares rose 0.9 percent to $301 in New York. The net loss more than doubled from the same quarter a year ago, and was slightly larger than the first quarter. But Tesla's cash burn in the second quarter slowed. The Palo Alto, Calif., company said it lost $4.22 per share from April through June as revenue grew 43 percent to just over $4 billion. Adjusted for stock-based compensation, the company lost $3.06 per share. That was worse than Wall Street estimates. Analysts polled by FactSet expected a $2.88 loss per share. In a statement released after the markets closed Wednesday, Tesla said it expects to produce 50,000 to 55,000 Model 3 sedans in the third quarter, an increase of at least 75 percent … [Read more...] about Cash-guzzling Tesla on way to big loss
Tesla’s biggest net loss helps meet production target
Electric car maker Tesla achieved its goal of producing 5,000 Model 3 vehicles per week by the end of its second quarter in June, but saw its biggest net loss to date. The net loss of $717.5m (£547.6m) more than doubled that from the same period last year, and was slightly larger than the first quarter loss.Tesla went through $739.5m (£565.2m) in cash last quarter to reach its production objectives.But investors were encouraged by the auto company reaching its Model 3 targets and shares surged 9.3% in after-hours trading.On the conference call accompanying the results, Tesla chief executive Elon Musk said he expected the company to avoid going back to the markets for capital and to be "essentially self-funding on a go-forward basis".The company would use money generated from sales to fund big projects such as the $2bn (£1.5bn) new factory in China and another plant in Europe, he said.In a statement released after the markets closed, Tesla said it expects to produce … [Read more...] about Tesla’s biggest net loss helps meet production target