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Tesla Inc. shares soar late Wednesday after the Silicon Valley car maker reported a surprise quarterly profit and said key projects were ahead of schedule.
Dow Jones futures: Tesla soared on an earnings stunner. Lam Research, Edwards Lifesciences led 5 stocks signaling buying opportunities.
“It’s cost, cost, cost,” Tesla CEO Elon Musk told investors in January just before losing $1.1 billion in the following months. It’s good news for the electric carmaker which has been fighting off rumors that demand for its vehicles, and profits, were in jeopardy (domestic sales in the US have slackened). It was also unexpected: Analysts polled by FactSet expected Tesla to lose $253 million this quarter.
Tesla (TSLA) delivered earnings and revenue surprises of 1340.00% and -3.28%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Tesla stock has jumped 18% to $300.32 after the company turned a surprise profit. With 179 million shares outstanding, that leaves Tesla with a market cap of nearly $54 billion. GM is worth just over $52 billion.
(Bloomberg) -- Tesla Inc. surged in late trading after the electric-car maker reined in expenses and posted its first profit in almost a year -- a shock almost no one saw coming.The Model 3 sedan maker earned $1.86 a share in the third quarter, beating analysts’ average estimate for a 24-cent loss. Chief Executive Officer Elon Musk has announced at least three rounds of job cuts since last year and restructured business units to counter slowing sales of higher-margin models.“Operating expenses are at the lowest level since Model 3 production started,” Tesla said in a statement. “As a result, we returned to GAAP profitability in Q3 while generating positive free cash flow. This was possible by removing substantial cost from our business.”Tesla shares climbed as much as 20% to $306 in late trading. The stock was down 23% this year through Wednesday’s close. The company’s 5.3% bonds rose 2 cents on the dollar to 93.75 cents, according to Trace, the highest level since March 2018.Ahead of ScheduleMusk, who’s notorious for setting ambitious timelines and falling behind schedule, said Tesla is proceeding faster than expected with the start of Model 3 production at the factory it began building early this year on the outskirts of Shanghai. Trial output is underway.The company is also ahead of schedule with Model Y, the small crossover that will share underpinnings with Model 3. Production will start in the summer of next year, rather than the fall, according to the company.Few analysts were predicting a profit. The highest estimate was for 34 cents a share.Revenue fell to $6.3 billion in the third quarter, missing analysts’ estimates and down from $6.8 billion a year ago. While the company produced and delivered thousands more vehicles, the vast majority were cheaper Model 3. The Model S and X retail for more than double the price of the sedan, which starts at $39,490 in the U.S.The revenue drop is the first year-over-year decline for the company since 2012, when the Model S sedan was just going into production.Earnings improved in part thanks to the company recognizing deferred revenue based on Musk making a controversial addition to its suite of drive-assistance features known as Autopilot. Smart Summon, which allows Tesla owners to tap their smartphone and remotely call for their car to pick them up, was rolled out to customers through an over-the-air software update days before the end of the quarter.Musk has been charging customers for performance features that Tesla vehicles aren’t actually capable of yet. At the end of June, the company said it expected to recognize $567 million of deferred revenue in the following 12 months. It’s now anticipating the release of almost $500 million tied to the rollout of Autopilot and “Full Self Driving” features, according to the statement, which doesn’t give a time frame.Tesla’s gross margin in the third quarter was 22.8%, down from a year ago but a 3.9 percentage point improvement from the prior three months.“The stock is popping because of gross margin, which is impacted by the Full Self Driving features,” said Ross Gerber, president of fund manager Gerber Kawasaki, which holds Tesla shares. “By releasing Smart Summon on the last weekend of the quarter, Musk was able to realize some of that deferred revenue.”(Updates with deferred revenue in sixth paragraph.)\--With assistance from Molly Smith.To contact the reporter on this story: Dana Hull in San Francisco at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, Melinda GrenierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Tesla on Wednesday posted a cash balance increase to $5.3 billion (£4.11 billion). The third-quarter results are an important milestone for Tesla and redemption for Chief Executive Elon Musk who had to step down as chairman after a series of scandals and investor doubts about Tesla's ability to withstand competition from larger, better capitalized global rivals. Tesla's gross margins, an important profit indicator for investors, surpassed expectations and Tesla said it was "highly confident" in exceeding the low end of its yearly global vehicle delivery goal.
Ford earnings beat but sales were weak, while management lowered its 2019 outlook amid pressure in the U.S. and China.
In the third quarter reported Wednesday, Tesla said it earned an adjusted $342 million, or $1.91 per share—far ahead of analysts’ consensus of a loss of 46 cents.
Tesla Inc on Wednesday surprised investors by posting a profitable third quarter, boosted by record deliveries, cost cuts and improved production schedules for its new electric vehicle model, causing shares to soar in after-market trading. Tesla on Wednesday posted a cash balance increase to $5.3 billion. The third-quarter results are an important milestone for Tesla and redemption for Chief Executive Elon Musk who had to step down as chairman after a series of scandals and investor doubts about Tesla's ability to withstand competition from larger, better capitalized global rivals.
Tesla stock jumped Wednesday after reporting third-quarter results that showed an unexpected profit, with a slight miss on revenue. The Tesla earnings report arrived after the market close.
Elon Musk is most well-known for his outrageous Twitter personality and his Tesla empire, but some of his other more sci-fi ideas might actually have some value
PALO ALTO, Calif., Oct. 23, 2019 -- Tesla has released its financial results for the third quarter of 2019 by posting the Q3 update on its Investor Relations website. Please.
The Dow Jones traded lower in the morning before recovering shortly thereafter. Major stocks reporting earnings after the market close include Tesla stock.
U.S. stocks rose slightly in a choppy session of trading as investors considered major corporate bellwethers’ concerns that a slowing global growth environment was crimping their quarterly earnings results.
Tesla Inc.’s third-quarter results are a ‘fork-in-the-road moment’ for the company, which still promises profits and sales of nearly half a million vehicles by year-end.
Investing.com - Tesla (NASDAQ:TSLA) shares soared in postmarket trading Wednesday as the electric automaker posted a surprise strong profit when Wall Street was forecasting a loss.
Social Capital Hedosophia Holdings Corp. to Merge with Virgin Galactic Pending Shareholder Vote By John Jannarone and Oliver Estreich One critical factor in the 1960s Space Race was a need for cash, and the same goes for commercial space travel. Ordinary investors now have a chance to supply such capital to fuel Richard Branson’s Virgin […]
Tesla is due to release its third-quarter earnings today after the markets close. Will Elon Musk answer analysts’ questions about Walmart solar roof fires?
Tesla has returned to profitability after the company surpassed estimates for the third quarter. Here's Yahoo Finance's Jared Blikre, Jen Rogers and Myles Udland.