220.77 -0.06 (-0.03%)
After hours: 7:58PM EDT
|Bid||220.77 x 1000|
|Ask||220.80 x 2900|
|Day's Range||217.62 - 223.22|
|52 Week Range||176.99 - 379.49|
|Beta (3Y Monthly)||0.33|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||248.50|
Walmart is suing Tesla for its solar panels after 7 Walmart stores allegedly caught fire, according to a court filing. Yahoo Finance's Alexis Keenan joins Akiko Fujita with the latest.
Investors were able to shrug off Tuesday's weakness on Wednesday, inspired by solid home sales figures and encouraging minutes from the most recent Federal Open Market Committee meeting. As it turns out, a second rate cut for September wasn't the foregone conclusion most investors believed it was.A "recalibration of the stance of policy, or mid-cycle adjustment" was how the Federal Reserve's chiefs described July's decision to lower the Fed Funds Rate by a quarter point. Going forward, "policymakers [need] to remain flexible and focused on the implications of incoming data for the outlook."InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, the Fed doesn't see imminent trouble ahead.To that end, the recent rate cut may already be having the desired effect. Though they leveled off this week, mortgage applications jumped nearly 22% for the week ending Aug. 9, as mortgage rates fell to multi-decade lows. Even before then, however, low rates caught the attention of would-be home buyers. Sales of existing homes surged to a five-month high pace of 5.42 million in July, according to data from the National Association of Realtors.Though the immediate response to word that the FOMC wasn't terribly interested in cutting rates again shaved some of the day's intra-day gains, investors kept stocks buoyed. The Dow Jones Industrial Average led the way, finishing the day up 0.93%, closely followed by the NASDAQ Composite's 0.9% advance. The S&P 500 rallied 0.82%. Top News in the Stock Market TodayTesla (NASDAQ:TSLA) may have mainstreamed the idea of electric vehicles. But, it seems rivals are starting to chip away at its market dominance. * 10 Marijuana Stocks to Ride High on the Farm Bill That's the concern from Alliance Bernstein analyst Toni Sacconaghi anyway, who cautioned shareholders after Tuesday's close that sales of the Model S and Model X have tapered off over the past couple of quarters. Sacconaghi also noted that the average selling price of those vehicles fell on the order of 10% during that time, leading to compressed gross margins, from 27% to 18%.On a semi-related note, Walmart (NYSE:WMT) filed a lawsuit against Tesla, though not over electric cars. According to reports that surfaced on Wednesday, several Tesla-made solar panels the retailer had installed had caught fire on stores' and facilities' rooftops.The news taints Tesla's already-struggling solar business.It was a bold, forward-thinking experiment. But, it's not bearing the fruit it was supposed to. That is, JPMorgan (NYSE:JPM) is shutting down its Chase Pay app.JPMorgan launched Chase Pay in 2015 when digital wallets were seemingly becoming mainstream. The idea hasn't been embraced by consumers like it was expected to. Going forward, JPMorgan will focus on partnerships with merchants as a means of bolstering its payments business. Big MoversThough it lagged well behind Amazon (NASDAQ:AMZN) and then Walmart on the e-commerce front, Target (NYSE:TGT) may finally be catching up on that front. Last quarter, digital sales for Target were up 34% year-over-year, driving TGT stock nearly 20% higher. The boost from the recently-ramped-up omnichannel effort also led Target to a nice earnings beat.Cree (NASDAQ:CREE) shares plunged almost 16% on Wednesday, despite the company's solid second-quarter results.After Tuesday's closing bell rang, the computer technology outfit reported earnings of 11 cents per share on revenue of $251 million, topping estimates for a bottom line of 10 cents per share and sales of $248 million. But the company said it's expecting to report a loss of 5 cents per share for the quarter now underway, on revenue of $240 million. The pros were modeling a top line of $260 million and earnings of 14 cents per share.Though it was possibly boosted by encouraging real estate news, Lowe's (NYSE:LOW) earned the bulk of the 10% gain it logged today. The pros were expecting sales of $20.9 billion to be turned into a profit of $2.01 per share, while the company did $21 billion worth of sales, and earned $2.15 per share. The bottom line was far better than the year-ago comparable of $1.86 per share.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Stock Market Today: Tesla Runs Into Headwinds, Fed Says Things Are Fine appeared first on InvestorPlace.
(Bloomberg) -- Walmart Inc.’s lawsuit against Tesla Inc. over fires at more than a half-dozen stores threatens to undermine the automaker’s latest bid to reboot its struggling solar unit.In the complaint Tuesday, the retailer said it had leased or licensed roof space at more than 240 stores to Tesla’s energy unit, formerly known as SolarCity, to install and operate solar systems. As of November, fires had broken out atop at least seven of the stores, Walmart said.The suit marks another high-profile headache for Tesla’s solar unit, which has lost much of its market share as it repeatedly rejiggers its strategy. The complaint, filed in New York state court, accuses the company of shoddy installations and “widespread, systemic negligence.” It comes days after Tesla Chief Executive Officer Elon Musk announced a “relaunch” of the unit that once led the rooftop solar industry.“The disagreement with Walmart could spook customers that Tesla is trying to bring back,” Hugh Bromley, a New York-based analyst at BloombergNEF, said in an interview Wednesday.Tesla shares fell as much as 3.7% Wednesday, to $217.60. The company didn’t respond to requests for comment.In a July 29 letter to Walmart, a lawyer for Tesla said the company had tried to resolve the matter amicably. “My client continues to prefer a business solution to this dispute, but Walmart’s conduct has put the parties on a collision course for litigation,” the attorney for Tesla, Fred Norton, wrote in the letter, which was filed with the court.On Sunday, Musk announced that his Palo Alto, California-based company is now offering to rent solar panels to customers without long-term contracts. The move harks back to the no-money-down leases the unit popularized back when it was a standalone company.Tesla bought SolarCity Corp. for $2.6 billion in 2016, then shifted away from leases to prioritize outright sales. It also ceased door-to-door marketing, ended a partnership with Home Depot Inc. and cut jobs. The company recently shifted to offering standardized panel systems online, rather than customized arrays.Installations have fallen in the last seven of 10 quarters since Tesla bought SolarCity. Last month the company reported its fewest quarterly installations to date: 29 megawatts. It has also struggled to ramp up production of its sleek solar roof singles that Musk unveiled with fanfare in 2016.Now, the solar unit faces a new challenge: Walmart.Walmart’s inspectors found Tesla “failed to abide by prudent industry practices in installing, operating and maintaining its solar systems,” according to the breach-of-contract complaint. Many of the panels had defects that could be seen by the naked eye or were easily identifiable with proper equipment, Walmart said.“This is the culmination of inattention being paid to the business,” Joe Osha, an analyst at JMP Securities, said in an interview Wednesday.The case is Walmart Inc. v. Tesla Energy Operations, New York State Supreme Court, New York County.(Adds comment from attorney letter in sixth paragraph.)\--With assistance from Dana Hull and Matthew Boyle.To contact the reporters on this story: Brian Eckhouse in New York at email@example.com;Chris Dolmetsch in Federal Court in Manhattan at firstname.lastname@example.orgTo contact the editors responsible for this story: David Glovin at email@example.com, ;Lynn Doan at firstname.lastname@example.org, Joe Ryan, Reg GaleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In a client note, A.B. Bernstein said increased competition from Jaguar and Audi is weighing on Tesla’s sales of the Model S and X, particularly in Europe.
Today, in a tweet, US President Donald Trump called automobile company executives “foolish.” While Ford and GM are in the green, Tesla is down.
Walmart Inc.’s lawsuit against Tesla Inc. over several roof fires that the retailer blames on solar panels is “yet another blow to the already tarnished” solar business at Tesla, analysts at ISI Evercore said in a note Wednesday.
Competition from other auto makers is cutting into sales of Tesla’s higher-end vehicles, an analyst wrote, rather than growing the category overall.
Walmart (NYSE:WMT) is suing Tesla (NASDAQ:TSLA) over trouble it has with the company's solar panels catching fire.Source: Shutterstock According to Walmart, the issues started back in 2012 when the first solar panels installed by Tesla Energy, then known as SolarCity, caught fire. Since then the retail chain has seen another six fires due to the solar panels.The lawsuit from Walmart claims that Tesla Energy was unable to properly install, repair and care for the solar panels it installs. After troubles with the solar panels, the company had all of them unhooked last year. Despite this, there was still a fire at one of these stores due to wires sparking.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWalmart is seeking damages from Tesla in this lawsuit. The company doesn't say how much it wants, but instead notes that this will be figured out in court. It has suffered millions of dollars in damages due to the Tesla solar panel fires, reports CBS News."As of November 2018, no fewer than seven Walmart stores had experienced fires due to Tesla's solar systems - including the four fires described above and three others that had occurred earlier," a portion of the Walmart lawsuit obtained by CNBC reads. * 10 Marijuana Stocks to Ride High on the Farm Bill Tesla Energy hasn't been doing well lately and that's not much of a surprise. SolarCity was already dealing with its fair share of troubles before the acquisition by Tesla. While TSLA CEO Elon Musk has been trying to turn the business around, it doesn't look like it's helping much.TSLA stock was down 1% as of noon Wednesday. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio As of this writing, William White did not hold a position in any of the aforementioned securities.The post Walmart Sues Tesla Over Solar Panel Fires appeared first on InvestorPlace.
Tesla (NASDAQ:TSLA) is finally a real car company. And Tesla stock will be in trouble until it starts trading like it.Source: Ivan Marc / Shutterstock.com Tesla delivered 95,356 cars during the second quarter and expects to deliver 400,000 for the year. Right now, TSLA has 15% of the U.S. luxury car market. Once its Shanghai factory ramps up, production will rise another 150,000 per year.When all this was a glint in Elon Musk's eye, five years ago, Tesla shares sold for $259 each. They open August 21 at $225.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Undervalued Stocks With Breakout Potential Tesla stock is finally being valued as a real car company. Even profitable car companies like General Motors (NYSE:GM), are worth just a small percentage of their sales. Tesla is still valued at twice its 2018 revenue.The result has been a great year for Tesla stock shorts. At the end of July almost 40 million Tesla shares were being borrowed and sold short. Tesla has 172 million shares outstanding. Tesla's Solar FailFor investors, Tesla is strictly a car company. Total revenue from its batteries and solar panels represent just 7% of revenue. The batteries are doing great, especially as back-up power for commercial utilities. The solar panels are doing horribly.Tesla paid $2.6 billion to get into this business in 2016, buying SolarCity -- from his cousins. At the time, SolarCity was the U.S. leader in residential solar. Now it's fourth, behind Sunrun (NASDAQ:RUN), Vivint Solar (NASDAQ:VLSR) and SunPower (NASDAQ:SPWR).Tesla is trying to juice up its market share with a rental program, starting at $50 per month for a 3.8 Mw system. The program is being offered in six states. It may do well in Connecticut, where electricity costs $23.35 per megawatt hour. It may do poorly in New Mexico where the cost is $12.21 per megawatt hour.There are also "gotchas" that make this look more like an old-fashioned solar lease than a true rental, like a $1,500 charge to remove the panels. The quality may also be suspicious. Walmart (NYSE:WMT) is suing Tesla because panels on 7 of its stores caught fire. It wants Tesla to remove panels from 240 stores and pay damages. Tesla stock's Remaining BullsThere remain Tesla bulls, like investor Ron Baron. He says 90 million cars are sold each year, meaning there's still a huge addressable market. He says Tesla's production costs are declining, and other carmakers are still slow-walking the move to electrics.In markets that love Tesla, people really love Tesla. The Tesla Model 3 now has 46% of the near-luxury car market in California. In Norway Tesla has 70% of the electric market and diesel vehicle sales are down 95%. Tesla's "secret master plan" from 2009 is working. Money from the high-end Tesla Roadster has gone into mass production of less-expensive models with a larger market. A pick-up truck and semi-trailer are on the way. People can, in theory, power their homes with Tesla solar cells and batteries.But Tesla is still bleeding cash. Even after cutting its research and capital spending to industry norms, it lost $167 million on operations in the second quarter, a net loss under GAAP of $2.31 per share. It needs to increase that research budget to bring out promised new models, and it needs to increase capital spending to scale production. The Bottom Line for TeslaTesla is changing the world but, like those solar companies mentioned earlier, it's not making a ton of money while doing it.Tesla may turn a small profit later this year because it has cut spending and is ramping up production. But it will be a small profit. To justify its $40.4 billion market cap, it must at some point make a large profit. * The 10 Best Marijuana Stocks to Buy Now It's nowhere near that, which is why the bears and shorts are having their day with it. At this point, Tesla stock would be better off trading like a car stock.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Tesla Stock Needs to Start Trading Like a Car Stock appeared first on InvestorPlace.
(Bloomberg Opinion) -- Solar-power developers often talk about a “pipeline” of projects, but this seems a bit too literal:To ensure proper torqueing, inspectors should have used a special tool known as an MC4 torque tool. However, some inspectors were using a plastic MC4 tool, which is insufficient to ensure proper torque. Indeed, a Tesla inspector admitted that Tesla was using a plumbing tool (rather than an electrical tool) to tighten connectors ... [Emphasis mine.]That was one of the more choice details from Walmart Inc.’s lawsuit against Tesla Inc. accusing it of “widespread, systemic negligence” with regards to solar-panel installations on more than 240 of the retailer’s stores, including seven connected to fires. And it is the choiceness of the details that matters here.In its complaint, filed in New York late Tuesday, Walmart contends Tesla breached its contract to design, install, maintain and operate solar-power systems on the roofs of its stores. Aside from the fires — complete with photographic evidence — Walmart accuses Tesla of a pattern of negligence, obfuscation and, as in the instance with the plumbing tool being used to tighten electrical connectors, sheer incompetence. Tesla did not respond to requests for comment. However, in letters from its lawyer, included as exhibits, Tesla blamed Walmart for “breaches of contract, deliberate delay, and bad faith,” effectively blocking the inspection process for the solar installations and unnecessarily forcing the entire fleet shut down for months because of a handful of “thermal events.”An unusual feature of Walmart’s complaint is that the “substantive allegations” section begins not with the fires or even the installation of the offending panels but an important chapter of Tesla’s own corporate history, namely the 2016 acquisition of SolarCity Corp. Walmart pulls no punches, characterizing the deal as a bailout of a struggling related party. This section reads like a dramatic prologue aimed at establishing the narrative that Tesla’s energy business was built on shoddy foundations, setting off a chain of unfortunate events that ultimately sparked those fires and put that plumbing tool in that inspector’s hand.It remains to be seen how effective a legal strategy this turns out to be. One of the most interesting aspects of the fight concerns the demand that all of the systems be “de-energized,” something Tesla’s lawyer characterized as being granted for the sake of goodwill but outside the scope of Walmart’s contracted rights. (Investors in leased solar systems are typically paid based on how much energy they generate, so shutting them off is costly.) For its part, Walmart argues that even if only a few fires happened, they were still fires on the roofs of big buildings where masses of customers mill around buying stuff, so perhaps an abundance of caution was warranted (especially if you’ve lost faith in the contractor). In any case, Walmart’s suit reopens old wounds for Tesla that never truly healed. SolarCity certainly was a struggling company. As I wrote in that summer of 2016, Tesla’s acquisition of it had more red flags than a Chinese embassy, with one proxy advisory firm characterizing it in Walmartian terms as a “thinly veiled bailout plan.” The deal flipped Tesla’s balance sheet from having net cash to net debt, including the $920 million convertible note that had to be settled for cash earlier this year. Since the deal, Tesla’s solar installations have dropped precipitously, with the second quarter’s figure merely one-seventh of what SolarCity deployed in its last quarter as a separate company. Tesla said it expects deployments to “stabilize and grow” in the second half.Tesla doesn’t break out figures for its energy operations beyond the gross margin line. However, from the fourth quarter of 2016 through the second quarter of 2019, gross profit added up to about $486 million. Annualized, that equates to a return of just 3.6% on the $4.9 billion transaction value — at the gross margin line. Apportioning Tesla’s R&D and general expenses to the energy business in line with its share of revenue would imply cumulative losses at the operating level. Speaking on an investor call earlier this year, a usually supportive Wall Street analyst described the SolarCity deal as a “controlled detonation.”Walmart’s suit comes mere days after Tesla introduced a new rental option to revive its solar business. Above all, it adds to the sense that SolarCity was a deal that Tesla didn’t need and which has ultimately burdened its resources and now maybe its reputation, too.The latter is especially important for a company that spent a good portion of last year struggling with the manufacture of a core product, the Model 3 car, and has faced questions about its own safety claims for that vehicle as well as complaints about quality and service. It is also important because, despite record vehicle sales, Tesla’s losses mean its highly priced stock continues to trade less on fundamentals and more on narratives of disruptive genius. At the very least, Walmart’s competing narrative could throw a pipe wrench into those particular works.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Walmart Inc (NYSE: WMT ) is demanding Tesla Inc (NASDAQ: TSLA ) pay for damages caused at seven stores and remove solar panels from hundreds of other retail locations. What Happened Tesla's solar panel ...
The two big companies come to legal blows over allegedly faulty solar panels, while the LED lighting specialist disappoints on guidance.
for a role in Saudi Aramco’s planned stock market listing after a charm offensive by top executives, including former Trump administration official Dina Powell. The Wall Street bank had failed to secure a top advisory role in 2017 when Saudi Aramco nominated banks including JPMorgan Chase, Morgan Stanley, Moelis, Evercore and HSBC for what could be the world’s largest listing. The successful launch of a $12bn international bond by Saudi Aramco this year renewed momentum for the IPO and revived optimism about the Saudi economy after the international condemnation that followed the killing of journalist Jamal Khashoggi.
Tesla’s service quality has been in focus this month, and reports of a Walmart solar panel fire could compound the company's troubles.
Tesla is building a Gigafactory 3 in China to offset some of the tariffs and expand its reach. Tesla wants to supply the Model 3 to Chinese consumers.
Walmart Inc. sues Tesla Inc. over a spate of roof fires at several Walmart stores that the retailer alleges were caused by Tesla solar panels.
Another day brings news of another Tesla lawsuit. But this time, it's not from a disgruntled consumer. Walmart — the $320bn market cap mega-retailer — has alleged that Tesla’s solar panels caused fires ...
The retailer claims fires broke out on seven store rooftops across the U.S. between 2012 and 2018, causing millions of dollars in damage.