|Day's range||0.0200 - 0.0200|
Here's why Tesla's stock continues to be on fire.
The Nasdaq exchange has had some of the most exciting companies in the stock market, and they've helped to make the Nasdaq the first major market benchmark to reach new highs. There are plenty of stocks listed on the Nasdaq that have seen impressive gains lately. Shares of Tesla finished the day up around 8%, adding to big gains throughout the week.
(Bloomberg) -- Elon Musk provoked the U.S. Securities and Exchange Commission in the course of taking a victory lap on Twitter over Tesla Inc.’s surging share price.The chief executive officer first taunted short sellers in a string of tweets, writing that the electric-car maker would “make fabulous short shorts in radiant red satin with gold trim.” That’s an apparent reference to jokes he’s repeatedly made about sending “short shorts” to investors who bet against Tesla’s shares, such as hedge fund manager David Einhorn.Musk, 49, then wrote Thursday that he would send shorts to the SEC, referring to the agency again as the “Shortseller Enrichment Commission.” He first used that phrase in October 2018 after the regulator sued him for securities fraud.Musk then tweeted a cryptic but profane play on the agency’s initials, prompting Ross Gerber, a fund manager who regularly engages with him on Twitter, to write back: “Dangerous.” Musk responded: “But sooo satisfying.”Musk and the SEC have a combative history. The agency sued him in September 2018 over tweets he sent a month earlier claiming that he had secured funding to take Tesla private at $420 a share. As part of a settlement agreement, Musk was required to pay a $20 million fine, step down as Tesla’s chairman for three years and have some of his tweets pre-approved by a company lawyer.The SEC took Musk back to court last year after he failed to clear a tweet about Tesla’s production with his in-house counsel. The two sides eventually agreed to amend the earlier settlement to add specific topics the billionaire can’t tweet about or otherwise communicate in writing without advance approval.Hours after a federal judge signed off on the amended deal in April 2019, then-SEC Commissioner Robert Jackson publicly criticized it, saying in a statement that Musk had not been sufficiently punished for failing to adhere to restrictions on his social media use.In December 2018, Musk told “60 Minutes” that he did not respect the SEC. A spokesperson for the agency declined to comment on his latest tweets.Tesla disclosed in February that the SEC sent the company a subpoena regarding “certain financial data and contracts” including “regular financing arrangements.” One analyst speculated the regulator may have been looking into how the company managed to build an assembly plant near Shanghai last year while spending just $1.3 billion on capital expenditures.A better-than-expected quarterly deliveries report sent Tesla’s shares surging 8% to a record close of $1,208.66 on Thursday. The stock has almost tripled this year.(Updates with additional tweets in the fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tesla stock seems to be on an endless rally to the moon
(Bloomberg) -- Tesla Inc.’s cars may run on batteries, but its stock price is fueled by “the power of the narrative,” according to an analyst with a sell rating on the shares.In a report Thursday, Joe Spak of RBC Capital Markets marveled at how the electric-car maker has managed to add about $48 billion of market capitalization by ginning up excitement about its quarterly vehicle deliveries.On June 24, Tesla’s investor-relations team shared a collection of delivery estimates that found analysts on average were expecting the company to hand over about 70,300 vehicles to customers. The market recognized this as a low bar, triggering gains that were further supported by two bullish emails Chief Executive Officer Elon Musk sent to employees that leaked to several media outlets.By the time Tesla reported 90,650 deliveries on Thursday, its shares had surged about 27% over the course of seven trading days, outpacing the S&P 500’s roughly 3% gain. The company added more market cap in that span than General Motors Co. or Ford Motor Co.’s entire valuations.“That, is remarkable,” Spak wrote. He estimates Tesla topped consensus delivery estimates by the equivalent of about $1 billion of revenue, meaning investors are valuing the beat at about 47.5 times sales.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tesla Inc has exceeded analysts’ projection of vehicle deliveries in the second quarter, defying a trend of falling sales amid the ongoing coronavirus pandemic lockdown, sending the shares of the electric carmaker up over 8%.
Tesla (NASDAQ: TSLA) said that it delivered 90,650 vehicles in the second quarter of 2020, well ahead of analysts' estimates, led by strong demand for its smaller Model 3 sedan and new Model Y crossover SUV. Combined deliveries of the Model 3 and Model Y totaled 80,050 in the quarter, Tesla said. Tesla's result was well ahead of Wall Street's coronavirus-adjusted consensus forecast of 72,000 vehicles delivered in the quarter.
Strength in consumer demand -- along with a healthy dollop of Fed and congressional relief -- has borne out a quick relative recovery in the overall jobs market.
The stock is hitting new highs following better-than-expected second-quarter deliveries. Here's what investors should know.
Investors should know how much debt a company owns, because the higher the degree of financial leverage, higher is the interest payment for the capital borrowed.
(Bloomberg) -- Tesla Inc. reported a sequential gain in quarterly deliveries that seemed improbable weeks ago, sending its stock surging toward Wall Street’s most bullish price target.The electric-car maker handed over 90,650 cars to customers in the three months ended in June, exceeding analysts’ average estimate for about 83,000 in a Bloomberg News survey. Tesla delivered about 88,400 vehicles in the first quarter.Tesla shares surged as much as 9.7% to $1,228 shortly after the open of regular trading, nearing the $1,250 target set Thursday by Wedbush Securities. The stock is on the verge of tripling this year.Chief Executive Officer Elon Musk overcame a roughly seven-week shutdown of Tesla’s California car plant by ramping up output at its new factory near Shanghai. Localizing production in China is helping reach more customers in the world’s largest electric vehicle market by lowering prices. The period also was the first full quarter of deliveries for the Model Y crossover, which Musk has predicted will become Tesla’s top seller.What Bloomberg Intelligence Says:Tesla’s Shanghai production has assumed the role of growth engine as the large addressable market of early adopters drives a surge in demand and makes China the company’s most important and voluminous market. Tesla pushed to keep its California factory open, and while demand is still virus-affected, the U.S. market is mature and no longer showing the growth that would move the company out of its niche.\-- Kevin Tynan, global autos analystClick here to read the researchWhile deliveries were down almost 5% from a year ago, that’s a strong showing relative to the declines other automakers sustained due to the global pandemic that decimated vehicle demand in key markets.“Tesla is winning because they have a product that is measurably better than both gas and electric competitors,” Gene Munster, a managing partner of venture capital firm Loup Ventures, wrote in a report. “It’s becoming more and more difficult to envision a scenario in which legacy automakers will find a way to meaningful expand the small share of EVs that they have today.”The next big question for Musk, 49, is whether the deliveries were enough to earn a quarterly profit. He suggested to employees earlier this week that avoiding a loss was possible.“Breaking even is looking super tight,” the CEO wrote to staff in an email seen by Bloomberg. “Really makes a difference for every car you build and deliver. Please go all out to ensure victory!”Musk has sent many end-of-quarter emails to rally employees and signal to investors, but Tesla hasn’t always followed through on his optimism. The then-record 97,000 deliveries Tesla reported for the three months that ended in September fell short of the 100,000 mark he floated in an email to workers.If Musk is on the mark this time, Tesla could qualify for inclusion in the S&P 500 Index. To be eligible, the company needs to report positive quarterly earnings under generally accepted accounting principles. Beyond sales of cars, Tesla can recognize revenue related to its automated driving system, and it also sells emissions credits to other automakers.“With strong Q2 volumes, GAAP profitability is now in focus and appears achievable, which could lead to inclusion in the S&P 500,” Ben Kallo, an analyst at Robert W. Baird who rates Tesla the equivalent of a hold, wrote in a report.Analysts on average project Tesla will report a loss of about $1.80 a share on a GAAP basis for the quarter, according to data compiled by Bloomberg. But higher-than-projected vehicle deliveries would make profitability a “less radical” idea, Dan Levy, a Credit Suisse analyst, wrote in a report Monday.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Nikola's market capitalization is currently almost 10 times greater than Tesla's at a similar point in its life-cycle.
General Motors' (GM) latest contract is for the first batch of 649 such vehicles, while the overall approved requisition objective is for 2,065 vehicles over the next decade.
The unexpected delivery numbers come a day after Tesla became the highest-valued automaker, surpassing the market capitalization of former front-runner Toyota Motors Corp. The rally on Thursday further widens Tesla's lead over legacy automakers as investors grow confident in its ability to define the industry's electric and software-driven future. Analysts said the solid delivery numbers heightened expectations for a profitable second quarter, which would mark the first time in Tesla's history that it would report four consecutive quarters of profit.
The unexpected delivery numbers come a day after Tesla became the highest-valued automaker, surpassing the market capitalization of former front-runner Toyota Motors Corp <7203.T>. The premarket rally on Thursday further widens Tesla's lead over legacy automakers as investors grow confident in its ability to define the industry's electric and software-driven future. Analysts said the solid delivery numbers heighten expectations for a profitable second quarter, which would mark the first time in Tesla's history that it would report four consecutive profitable quarters.
A handful of corporate behemoths has skyrocketed YTD. Some of these stocks carry a favorable Zacks Rank and have rallied more than 20% YTD.
CureVac, an unlisted German company, has said it is developing portable, automated mRNA production units that it calls printers and which Musk described as "RNA microfactories". The company, based in Tuebingen and backed by the Bill & Melinda Gates Foundation, is a pioneer of the so-called messenger RNA approach, which is also pursued by BioNTech and its partner Pfizer as well as Moderna.
CureVac, an unlisted German company, has said it is developing portable, automated mRNA production units that it calls printers and which Musk described as "RNA microfactories". The company, based in Tuebingen and backed by the Bill & Melinda Gates Foundation, is a pioneer of the so-called messenger RNA approach, which is also pursued by BioNTech <BNTX.O> and its partner Pfizer <PFE.N> as well as Moderna <MRNA.O>.
Investors are buying up shares ahead of the electric-car maker's quarterly vehicle deliveries update.
Wall Street on Wednesday looked to extend a monster Q2 rally, and set the tone for a new month and quarter.
Uncle Sam best come through with more stimulus checks, or else investors could be battered.
Keeping consistent with what Elon Musk had suggested in May, Tesla (NASDAQ: TSLA) announced today that the cost for the full self-driving (FSD) package is now $8,000 -- a $1,000 increase over its previous price tag. While the price hike may seem steep, it's considerably more appealing than the price that Musk imagines for the sophisticated software in the future. According to Electrek.co, which covers the electric transportation industry, some Tesla drivers anticipated the higher price and decided to purchase the FSD package last quarter.
Marketing research firm Kantar and advertising giant WPP (NYSE: WPP) have released their 2020 Top 100 Most Valuable Global Brands report, and Tesla (NASDAQ: TSLA) is climbing the ladder. The electric-vehicle maker's brand value has jumped 22% versus 2019, according to the report. While Tesla's market capitalization has now surpassed Toyota's (NYSE: TM), the Japanese automaker still leads the auto category for overall value.