|Bid||282.6100 x 800|
|Ask||282.7600 x 1100|
|Day's Range||282.30 - 294.48|
|52 Week Range||244.59 - 387.46|
|Beta (3Y Monthly)||0.62|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 30, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||334.53|
Tesla shares tumbled after the company reportedly cut production.
Tesla Inc. shares fell more than 5% in midday session after Bloomberg News reported the company has reduced production hours of its Model S and Model X vehicles after dropping cheaper variants of those models. The report cited a company spokesperson. Tesla did not immediately respond to a request for comment. Earlier Wednesday, the stock got a downgrade from analysts at RBC Capital Markets, who said the company's third-quarter earnings were likely peak profitability for the Silicon Valley car maker. Tesla shares have lost 20% in the past 12 months, compared with losses of around 8% for the S&P 500 index.
Details about Tesla's restructuring emerged after the company announced a 7 percent workforce reduction on Friday-- its second round of layoffs in just seven months. Tesla is asking laid-off employees to cooperate in any claims against or by the company, and to adhere to a strict non-disparagement agreement, according to documents attained by CNBC. Shares in the electric car company have dropped by more than 20 percent since Tesla CEO Elon Musk announced the layoffs, and warned of declining profitability through the first quarter of 2019.
Chief Executive Officer Elon Musk announced earlier this month that Tesla would no longer take orders for the 75 kilowatt hour version of the Model S or Model X starting Jan. 14. “We recently announced that we are no longer taking orders for the 75 kWh version of Model S and X in order to streamline production and provide even more differentiation with Model 3,” Tesla said in an emailed statement in response to an inquiry from Bloomberg News.
Check out the companies making headlines midday Wednesday: FedEx FDX , UPS UPS —Shares of FedEx and UPS fell 1.4 percent and 2.4 percent, respectively, after The Wall Street Journal reported that Amazon is trying to poach shippers from the two companies by offering lower fuel surcharges and fees.
Tesla Inc.’s surprise third-quarter profit might have marked “peak profitability” for the decade. “It’s not that we don’t believe Tesla can grow over time,” the analysts, led by Joseph Spak, said. Tesla is scheduled to report fourth-quarter earnings Jan. 30 after market close, and Wall Street expects a GAAP as well as an adjusted profit for the quarter.
Ford reports after the close, but with the company having already warned on fourth-quarter results, many investors will be hoping for strong 2019 guidance.
RBC Analyst: Tesla Is Valued on ‘Overly Lofty Expectations’Tesla Over the last few sessions, Tesla (TSLA) stock has been heading downward. The stock had fallen 13.9% as of yesterday, and it started this morning on a negative note, too. At 9:37 AM
“The rubber appears to be hitting the road as the realities of Tesla becoming a volume player [and] the challenges to scale and deliver high volume at high average selling prices [and] margins are coming to a head,” wrote Spak, the RBC Capital analyst, on Wednesday. Spak downgraded Tesla’s shares to Underperform from Sector Perform, setting a $245 price target, which is $45 lower than his previous one and well below FactSet’s average of around $340.
Tesla (TSLA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
RBC Capital Markets analyst Joseph Spak downgraded Tesla to underperform from sector perform, saying the challenges of the scaling up and delivering a large volume of cars at high prices and margins are coming to a head.
Greenlight Capital is still betting against electric car maker Tesla, and the hedge fund's manager isn't mincing words about his opinion of Elon Musk. In a quarterly letter to investors on Tuesday, Greenlight's David Einhorn called Tesla TSLA a "bizarre situation" and called out CEO Musk on his recent run-in with the Securities and Exchange Commission.
IBM is Real Money's stock of the day. Group sales were also softer than the prior period, falling 1% to $21.76 billion, but the figure topped estimates and IBM said it sees free cash flow for 2019 of around $12 billion, largely in-line with its tally over the past year, reported TheStreet's Martin Baccardax. "We see the strong bookings Red Hat recently reported as further evidence of clients' confidence in the value," IBM CFO Jim Kavanaugh told investors on a conference call late Tuesday.
growth story is in jeopardy, according to the latest RBC note on the electric vehicle maker. The firm also cut the company's price target to $245 from $290, saying that Tesla's growth expectations are too high. "It's not that we don't believe Tesla can grow over time, our model shows solid LT growth.
Ma said that history shows technological innovation is a primary factor behind global conflicts. It's not the first time the business leader has made such a warning — he made a similar comment in 2017. Chinese billionaire Jack Ma has warned that technology could lead to a third world war.
Dow stock IBM led an early advance Wednesday, as the stock market looked to hold support and rebound from Tuesday's loss.
S&P 500 Bleeds on Reports of US-China Trade Talks Going off TrackUS-China trade talks On Tuesday, a Financial Times report sent tremors through the broader market. The report claimed that “The Trump administration has rejected an offer from
Tesla Inc. shares fell 1.3% in premarket trade Wednesday, after RBC downgraded the stock to underperform from outperform and said growth expectations are too high to justify current levels or add to positions. Analyst Joseph Spak cut his stock price target to $245 from $290. For years, Tesla has been selling a dream of transportation disruption and strong growth, turning the stock into a top 6, or even at times top 3 most valuable car original equipment manufacturer, despite delivering only a fraction of units promised and barely a profit, he wrote. "A stock should of course discount future cash flows and the market took the promises of Tesla and their future growth potential to justify lofty valuations while Tesla took capital needed to support their endeavors," Spak wrote in a ntoe. Now, however, "the rubber appears to be hitting the road," as the reality of Tesla becoming a high volume manufacturer with the scale and high average selling prices/margins are coming to a head, he said. Spak believes demand for Model 3 sedans is strongest at the $35K level the company had promised but that it has been unable to deliver yet. RBC is expecting that the company's third-quarter, when it posted a profit, may have been peak profitability for the decade. Shares have fallen 15% in the last 12 months, while the S&P 500 has fallen 7.3%.
Eight analysts say "buy," seven say "hold" and nine now say "sell," according to TipRanks.com.
Tesla approaches its fourth-quarter earnings day hoping to show a GAAP profit for the second quarter in a row.
Asia’s biggest automaker is setting up a joint venture with Panasonic Corp. to produce batteries for partners such as its Daihatsu unit, Mazda Motor Corp. and Subaru Corp. that together account for more than 20 percent of global car production. Toyota will own 51 percent of the venture, to be established by the end of 2020. For Panasonic, which supplies batteries to Tesla Inc., it’s good news. The spreading of risk away from Elon Musk’s company will relieve investors.
"We are concerned that the company may not successfully produce its Standard Battery version in time in order to compensate for a potential drop in demand for its high-end vehicles," wrote Neddham & Co. analyst Rajvindra Gill in a note out Tuesday morning.