305.99 +51.31 (20.15%)
After hours: 7:59PM EDT
|Bid||305.75 x 1000|
|Ask||306.00 x 900|
|Day's range||251.35 - 256.14|
|52-week range||176.99 - 379.49|
|Beta (3Y monthly)||0.32|
|PE ratio (TTM)||N/A|
|Earnings date||23 Oct 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||245.63|
(Bloomberg) -- Elon Musk flipped the script on those who doubted Tesla Inc. could return to profitability and meet aggressive timelines, delivering positive earnings few saw coming and declaring he’s ahead of schedule on a new plant and product.The electric-car maker earned $1.86 a share in the third quarter, exceeding the most optimistic projection by a wide margin and beating the consensus estimate for a 24-cent loss. On top of that, Musk peppered investors with positive updates: Tesla’s new factory in China is already starting production, the Model Y crossover will launch months earlier than expected next year and the long languishing energy business is showing signs of life.It all added up to a report that broke the mold for Musk, 48, who’s notorious for setting stretch goals that take longer to pull off than he plans. Tesla still faces challenges: quarterly revenue fell for the first time since 2012, and the company has posted the occasional profit in the past that it’s been unable to sustain. But after reporting reined-in expenses that padded gross profit margins, the shares climbed in late trading to levels last seen in February.“If you look at the margins and the profitability, that’s the major feather in the cap for the bulls,” Dan Ives, an analyst at Wedbush Securities, said on Bloomberg Television. “If they can maintain this, this could be a potential game changer for them going forward.”Tesla shares climbed as much as 21% to $308.50 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.Trial output of the Model 3 is underway at the factory Tesla began building early this year on the outskirts of Shanghai. Producing the sedan locally enables Musk to charge less for the car by avoiding import duties. The factory “opens up a whole new market” for the company, said Gene Munster, a managing partner at venture capital firm Loup Ventures.Production and deliveries of the Model Y, which shares underpinnings with the Model 3, will start in the summer of next year, rather than the fall. Musk -- never one to back down from outlandish predictions -- said the crossover could outsell the Model S, X and 3 combined.Elon Musk Set Up China Plant in Record Time—Now the Hard PartA new Tesla pickup, which Musk has teased on Twitter and said could be unveiled next month, is the company’s “best product ever,” he told analysts on the earnings call.‘Niche Products’The CEO was as candid as he’s ever been about the extent to which Tesla is no longer focused on the high-priced Model S and X, both of which can sell for six figures, calling them “really niche products.”“To be totally frank, we’re continuing to make them more for sentimental reasons than anything else,” he said. “They’re only of minor importance to the future.”For all of Musk’s nonchalance, the pivot toward lower-priced cars at the expense of pricier models has been financially taxing. Revenue fell to $6.3 billion in the third quarter, missing analysts’ estimates and dropping from $6.8 billion a year ago.Earnings improved in part thanks to the company recognizing about $30 million of 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 update days before the end of the quarter.Tesla Posts First Gain in Solar Panel Installations in a Year“The business model is slowly shifting to high-margin software,” Loup Ventures’ Munster said.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 balance sheet is good, demand’s good and gross margins beat expectations across the board,” said Ben Kallo, an analyst at Robert W. Baird who recommends buying Tesla shares. In the coming days, he predicted, “you’ll also see a lot of short covering.”\--With assistance from Gabrielle Coppola, Molly Smith, Ed Ludlow, Brian Eckhouse and Taylor Riggs.To contact the reporter on this story: Dana Hull in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, Melinda GrenierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Tesla Inc.’s third quarters have become a wildcard for the stock’s many bulls and (especially) bears. Wednesday evening’s surprise profit sent the stock soaring, in a virtual replay of what happened this time last year. The big question is whether history will keep repeating or if Tesla can finally achieve the sustained profits and self-funding it has claimed to be on the cusp of for a while.This matters for two reasons. First, investors added more than $9 billion to Tesla’s value on the back of a net profit of $143 million and free cash flow of $371 million. Second, revenue was actually down on both a sequential and year-over-year basis. When all of Tesla’s value is essentially in its multiple — that is, the promise of stratospheric growth — and growth has gone negative, then it’s fair to say the pivot to earnings had best be (a) ongoing and (b) better than a hundred million or so a quarter.Tesla says it has been focusing on cost-control in preparation for the next phase of growth, with expansion in China and an expected 2020 launch of the Model Y featuring prominently in Wednesday’s announcement. This is catnip for bulls, looking past the evident slowdown in sales to another growth story and suggesting the company has finally gotten its arms around its biggest challenge: selling cars for more than it costs to make them.But we aren’t there yet. On the growth front, it’s worth noting Tesla implicitly cut its guidance for the year; it is now “highly confident” of delivering more than 360,000 vehicles this year versus an old range of 360,000 to 400,000.The profit and free cash flow figures also require scrutiny. Despite a slight drop in revenue, Tesla’s pre-tax profit swung up by almost $550 million from the second quarter. Of that, $126 million, or almost a quarter, was due to a positive swing in “other income,” including foreign-exchange gains. Another $117 million reflected restructuring charges going to zero. Tesla’s spending on SG&A also fell to its lowest share of revenue since the final quarter of 2018, the last time it reported a GAAP net profit. At less than $600 million, it was also the lowest in absolute terms since the second quarter of 2017, when Tesla sold less than a quarter the number of vehicles. By far the biggest swing, worth $317 million, was the improvement in gross profit margin.To be clear, cutting costs is positive and necessary. The question is whether this can be sustained, given we’ve been here before, only to be quickly disappointed.Tesla’s free cash flow, meanwhile, was positive for the second quarter in a row, at $371 million. Again, that is positive. Again, the number was flattered by Tesla underspending on its capex budget. Guidance for the year was $1.5 billion to $2 billion. Based on the low spending in the first half, the mid-point of Tesla’s range implied it spending an average of $610 million in the third and fourth quarters. Capex came in $225 million below that level, equivalent to 61% of the free cash flow. Tesla’s capex continues to come in lower than its depreciation expense, which is striking for a company with such expansive ambitions. The company puts this down to rising efficiency.There is something ludicrous about the stock of a company already priced at $46 billion, or 422 times the 2020 GAAP earnings forecast, surging because it reported a small net profit rather than a small net loss (the consensus estimate was a negative $234 million). Ditto for a few hundred million of free cash flow largely explained by below-guidance capex. Tesla’s own forecast points to positive profits and free cash flow continuing, but which may suffer “temporary exceptions, particularly around the launch and ramp of new products.” Meanwhile, the company’s belief that it “has grown to the point of being self-funding” echoes previous statements.As was true this time last year, a good quarter is welcome. But justifying the hopes already embedded in Tesla’s valuation remains very much a work in progress.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff 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.
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 on Wednesday posted a cash balance increase to $5.3 billion (£4.11 billion) and reported a profit of $1.86 per share, shattering analyst expectations for a loss of 42 cents per share. The third-quarter results are an important milestone for Tesla and redemption for 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.
Tesla on Wednesday posted a cash balance increase to $5.3 billion and reported a profit of $1.86 per share, shattering analyst expectations for a loss of 42 cents per share. The third-quarter results are an important milestone for Tesla and redemption for 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.
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
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.
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?
While Harley-Davidson (HOG) and PACCAR (PCAR) deliver a comprehensive beat in the third quarter, Tesla (TSLA) Shanghai Gigafactory in progress.
Tesla CEO Elon Musk expects its self-driving cars to hit the road by 2020. However, Zoox CTO Jesse Levinson believes that Musk could miss this deadline.
Tesla (TSLA) is scheduled to release its third-quarter earnings today after the market close. The stock has been trading with positive momentum.
Whether billionaire Elon Musk's flagship company can start mass production quickly enough to hit stated targets is the question investors will want an answer to when Tesla announces third-quarter results on Wednesday. Tesla last week obtained the certificate it needs to start manufacturing cars in the country.
(Bloomberg) -- The futuristic door handles on Tesla Inc.’s Model S are being blamed for a fatal crash in which a police officer was unable to pull a man to safety from his burning car.Omar Awan, a 48-year-old anesthesiologist, was driving his leased Tesla in February when he lost control on a south Florida parkway and the car slammed into a palm tree, according to a wrongful death lawsuit filed in state court in Broward County.A police officer couldn’t open the doors because the handles were retracted and bystanders watched helplessly as the car filled with smoke and flames, according to the complaint, which alleges the fire originated with the car’s battery.The door handles on the Model S are flush with the car and pop out -- “auto-present” in the words of Tesla -- when they detect that the key fob is nearby.“Fire engulfed the car and burned Dr. Awan beyond recognition -- all because the Model S has inaccessible door handles, no other way to open the doors, and an unreasonably dangerous fire risk,” according to the Oct. 10 suit. The complaint lists the cause of death as smoke inhalation and states that Awan had sustained no internal injuries or broken bones in the crash.Read More: What First Responders Don’t Know About Fiery Electric VehiclesTesla didn’t immediately respond to a request for comment.Consumer Reports said in 2015 that broken door handles were one of the most common problems with the Model S.Awan’s Tesla continued to burn for hours, reigniting several times even after firefighters had extinguished the flames and the car had been towed, according to the complaint.This isn’t the only case to fault the Model S’s lithium-ion batteries as flammable. The family of an 18-year-old who lost control of his Tesla at 116 miles per hour and crashed into a concrete wall last year blames an explosion of the battery for his death in an “entirely survivable” crash, according to a suit filed this month in state court in San Jose, California.Awan’s case is Awan v. Tesla Inc., 19-021110, Circuit Court of Broward County, Florida.To contact the reporter on this story: Robert Burnson in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: David Glovin at email@example.com, Peter Blumberg, Joe SchneiderFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Oct.23 -- JMP Securities Managing Direct, Joe Osha and Bloomberg Businessweek's Max Chafkin, discusses Tesla's surprise Q3 profits. They join Taylor Riggs on "Bloomberg Technology."
Oct.23 -- Ivan Feinseth, chief investment officer of Tigress Financial Partners, talks about Tesla Inc.'s results and outlook. Tesla surged in late trading after the electric-car maker reined in expenses and posted its first profit in almost a year. Feinseth speaks with Shery Ahn and Haidi Stroud-Watts on "Bloomberg Daybreak: Australia."
Oct.23 -- Wedbush Securities Managing Director Dan Ives and Bloomberg Businessweek's Max Chafkin discuss Tesla Inc's third-quarter earnings report with Bloomberg's Taylor Riggs on "Bloomberg Technology."