قالب وردپرس درنا توس
Home / Business / Tesla shares are floating on expectations of Q3 results

Tesla shares are floating on expectations of Q3 results



Tesla


Inc.


TSLA 12.72%

shares increased Tuesday after announcing plans to report quarterly results faster than expected, speculating that it has good news to deliver.

Investors are anticipating the forthcoming quarterly report with even more excitement than usual because CEO Elon Musk has promised that Tesla would record a net profit and positive cash flow for the three-month period based on his belief that Tesla could charge its money- lose operations by maintaining Strong production of Model 3 since.

Investors had expected the results to come next week or later, but Tesla late on Monday said it would release its quarterly report after the markets closed Wednesday. Tesla's share price, which fell by almost a third from its peak this year, jumped almost 1

3% in Tuesday trading to close at $ 294.14.

"Game theory suggests early / surprise reporting is good news," Adam Jonas, an analyst for Morgan Stanley, said in a note to investors Tuesday. "Tesla is at the most critical point in the ramp of its main product (Model 3) and is undoubtedly the most critical point in liquidity / access to capital since it has been a public company. Why should Tesla draw the introduction of negative news to market now? "

Analysts have largely been less confident than Mr. Musk in Tesla's ability to deliver profit. On average, they estimate a net loss of 95 cents per share for the last quarter based on generally accepted accounting principles, according to a factSet survey. This compares with a loss of $ 3.70 per share in the third quarter of last year. Revenues are expected to rise to $ 6.1 billion, according to FactSet, from $ 2.98 billion the year before.

Analysts expect Tesla to report a corrected loss of 3 cents per share in the last period compared to $ 2.92 per share the previous year, according to FactSet on Tuesday.

According to Mr. Musk's prediction, it would be the third quarterly net profit in Tesla's 15-year history. Tesla realized a $ 22 million profit in the third quarter of 2016 and $ 11.2 million in the first quarter of 2013. It has never reported an annual profit.

High wagers for the quarter intensified spotlight on Mr. Musk, whose series of recent gaffes has raised questions about his mindset. Most especially, he tweeted on August 7 messages saying that he had secured funding to take Tesla privately.

The twins sent shares that hurried to come down as it became apparent that an agreement was not concluded. Mr. Musk recently settled claims from the Securities and Exchange Commission about his tweets wild investors. As part of the settlement, he becomes CEO, but has to go down as leader in the coming weeks. He is not allowed to be leader for three years. Tesla is expected to announce a new board member and two additional independent directors soon.

Tesla's turmoil and muscular episodes have helped the firecourse's argument that the company was overestimated and their efforts against it.

A strong view could be a turning point for opinions about Tesla, Ben Kallo, analyst for Robert W. Baird & Co., said Tuesday in a note to investors. "While some believe it will take several quarters of execution to change the story, we believe a strong third quarter, and favorable prospects for the conference call should be sufficient to drive stocks higher," he said.

Some long-time bearers already anticipate a bounce. Lemon Research, which has traded Tesla for five years, has filed a lawsuit against the company over the two-private tweets, said Tuesday that it had changed the view of the car manufacturer and said that the electric cars "destroyed the competition". [19659007] Citron cited Tesla's sales performance against competitors' future potential, including plans for Chinese and European factories, a compact SUV model and tractor trailer production, as reasons for long-term prospects.

Tesla earlier this month said total vehicle deliveries in the third quarter reached 83,500, a sharp increase from more than 26,150 cars a year earlier, thanks to the continued production of Model 3 this summer. It said that 55,840 model 3s were delivered during the period. The vehicle, which is lower than other Tesla models, is the cornerstone of Mr. Musk's efforts to transform Tesla from a niche luxury brand to a mass car manufacturer.

Delays in Achieving Model 3 production targets have put more pressure on Tesla's limited cash supply, claiming concerns among some suppliers about the economic outlook of the car company.

Many analysts expect Tesla to increase more money, partly to help fuel its growth plans. But Mr. Musk has said he does not want to say that Model 3 will generate funds.

Investors on Wednesday will largely focus on Tesla's ability to generate money and guidance for fourth quarter Model 3 production.

Analysts surveyed on average expect Tesla to deliver 66,400 model 3s in the current period. The company has already said that 8 088 small sedans were in transit at the end of the third quarter, and are considered fourth quarter deliveries, which indicates that the analyst expects Tesla to build at least 58,000 model 3s in the quarter.

Write to Tim Higgins at Tim.Higgins@WSJ.com


Source link