Tesla to cut thousands of jobs as Elon Musk warns the ‘road ahead is very difficult’
- Thread starter petros
- Start date
Tesla earnings ondeck for tomorrow at closing i believe.
Nobody knows how bad the convid shut down has hurt them or how much investors will care.
Tesla stock opened the year at $443 and is at $775 after hours today. Meaning the stock is up about 75% for the year 2020 so far.
Incredible.
Elon Musk is looking at being granted 1.7 million shares of TSLA @ $350
He deserves it.
Nobody knows how bad the convid shut down has hurt them or how much investors will care.
Tesla stock opened the year at $443 and is at $775 after hours today. Meaning the stock is up about 75% for the year 2020 so far.
Incredible.
Elon Musk is looking at being granted 1.7 million shares of TSLA @ $350
He deserves it.
I'll let you in on a little private company info.
The EPS will still be $0, over 10% of the shares will be in a short position and there will be no dividend
The EPS will still be $0, over 10% of the shares will be in a short position and there will be no dividend
Why Tesla Stock Is Soaring
Here's what investors love about the electric-car maker's first-quarter earnings report.
Shares of Tesla (NASDAQ:TSLA) soared following the company's earnings report on Wednesday afternoon. The stock jumped more than 10% at one point in after-hours trading -- and that was on top of a 4% gain during the trading day on Wednesday. The move put shares above $880, or up 270% over the past year and more than 100% in 2020 alone.
The growth stock is absolutely crushing the market.
But what was is it in Tesla's first-quarter update on Wednesday that gave the electric-car maker's stock yet another boost higher? Here's a look at three key reasons investors are optimistic following the electric-car maker's latest quarterly update.
1. Profitable for a third quarter in a row
Perhaps the main reason Tesla stock jumped was the company's better-than-expected first-quarter earnings. Its adjusted earnings per share was $1.24, crushing analysts' average forecast for a loss per share of $0.36. Furthermore, Tesla notably reported a small profit of $16 million (nine cents per share) on a generally accepted accounting principles (GAAP) basis.
"Q1 2020 was the first time in our history that we achieved a positive GAAP net income in the seasonally weak first quarter," management said in the company's first-quarter update.
This marked the third quarter in a row that Tesla was profitable on both a GAAP and non-GAAP basis.
Revenue for the quarter increased 32% year over year to $5.99 billion, fueled by record first-quarter production and vehicle deliveries.
2. Model Y's impressive start
One reason investors have been so bullish on Tesla stock over the last year is the company's accelerated pace of execution. In late 2019, the company brought online a factory in China, less than a year after breaking ground on it. Then in March of 2020, Tesla started delivering its new Model Y crossover six months ahead of the company's original timeline for the vehicle.
Now Tesla has yet another important bit on its improved pace of execution to report to shareholders: Model Y sales contributed a gross profit during the quarter, marking "the first time in our history that a new product has been profitable in its first quarter," Tesla said.
3. Improved profitability in Shanghai
Another encouraging sign of progress during the quarter was the company's improved gross margin. Tesla's automotive gross margin during the quarter was 25.5% -- the highest the company has seen in 18 months. While higher regulatory credit revenue gave this key metric a boost, another benefit driving sequential margin expansion was improved profitability at the company's new factory in Shanghai, Tesla said. Further, the company said it now expects to achieve a Model 3 production rate of 4,000 units per week at its Shanghai factory by mid-2020.
What about COVID-19?
Of course, Tesla acknowledged that COVID-19 has created challenges for the company. "It is difficult to predict how quickly vehicle manufacturing and its global supply chain will return to prior levels," management said. The company's factory in California is currently on pause as Tesla copes with economic restrictions as part of an effort to help slow the spread of the coronavirus.
Further, management said it is withdrawing guidance for positive net income and free cash flow over the near-term, highlighting a "wide range of potential outcomes" during this uncertain time. "We will again revisit our 2020 guidance in our Q2 update."
Reassuring investors, Tesla said it believes it has sufficient liquidity to continue significant investments in its product roadmap and long-term capacity expansion while also managing the near-term challenges from COVID-19.
Tesla ended the quarter with $8.1 billion of cash. But free cash flow was negative $895 million due to a combination of a sequential inventory growth due to the interruption operations because of the coronavirus and investments in Model Y production capacity.
If Tesla can't reopen its factory soon, the company's cash position could fall sharply.
https://www.fool.com/investing/2020/04/29/why-tesla-stock-is-soaring.aspx
Here's what investors love about the electric-car maker's first-quarter earnings report.
Shares of Tesla (NASDAQ:TSLA) soared following the company's earnings report on Wednesday afternoon. The stock jumped more than 10% at one point in after-hours trading -- and that was on top of a 4% gain during the trading day on Wednesday. The move put shares above $880, or up 270% over the past year and more than 100% in 2020 alone.
The growth stock is absolutely crushing the market.
But what was is it in Tesla's first-quarter update on Wednesday that gave the electric-car maker's stock yet another boost higher? Here's a look at three key reasons investors are optimistic following the electric-car maker's latest quarterly update.
1. Profitable for a third quarter in a row
Perhaps the main reason Tesla stock jumped was the company's better-than-expected first-quarter earnings. Its adjusted earnings per share was $1.24, crushing analysts' average forecast for a loss per share of $0.36. Furthermore, Tesla notably reported a small profit of $16 million (nine cents per share) on a generally accepted accounting principles (GAAP) basis.
"Q1 2020 was the first time in our history that we achieved a positive GAAP net income in the seasonally weak first quarter," management said in the company's first-quarter update.
This marked the third quarter in a row that Tesla was profitable on both a GAAP and non-GAAP basis.
Revenue for the quarter increased 32% year over year to $5.99 billion, fueled by record first-quarter production and vehicle deliveries.
2. Model Y's impressive start
One reason investors have been so bullish on Tesla stock over the last year is the company's accelerated pace of execution. In late 2019, the company brought online a factory in China, less than a year after breaking ground on it. Then in March of 2020, Tesla started delivering its new Model Y crossover six months ahead of the company's original timeline for the vehicle.
Now Tesla has yet another important bit on its improved pace of execution to report to shareholders: Model Y sales contributed a gross profit during the quarter, marking "the first time in our history that a new product has been profitable in its first quarter," Tesla said.
3. Improved profitability in Shanghai
Another encouraging sign of progress during the quarter was the company's improved gross margin. Tesla's automotive gross margin during the quarter was 25.5% -- the highest the company has seen in 18 months. While higher regulatory credit revenue gave this key metric a boost, another benefit driving sequential margin expansion was improved profitability at the company's new factory in Shanghai, Tesla said. Further, the company said it now expects to achieve a Model 3 production rate of 4,000 units per week at its Shanghai factory by mid-2020.
What about COVID-19?
Of course, Tesla acknowledged that COVID-19 has created challenges for the company. "It is difficult to predict how quickly vehicle manufacturing and its global supply chain will return to prior levels," management said. The company's factory in California is currently on pause as Tesla copes with economic restrictions as part of an effort to help slow the spread of the coronavirus.
Further, management said it is withdrawing guidance for positive net income and free cash flow over the near-term, highlighting a "wide range of potential outcomes" during this uncertain time. "We will again revisit our 2020 guidance in our Q2 update."
Reassuring investors, Tesla said it believes it has sufficient liquidity to continue significant investments in its product roadmap and long-term capacity expansion while also managing the near-term challenges from COVID-19.
Tesla ended the quarter with $8.1 billion of cash. But free cash flow was negative $895 million due to a combination of a sequential inventory growth due to the interruption operations because of the coronavirus and investments in Model Y production capacity.
If Tesla can't reopen its factory soon, the company's cash position could fall sharply.
https://www.fool.com/investing/2020/04/29/why-tesla-stock-is-soaring.aspx
The most accurate effects of the plant shutdown and the supply chain issues won't be evident until Q2... Add to this that the Chinese gvt is cutting all subsidies to Tesla, cheap gas will kill any growth for EVs and a full 13.75% of all outstanding shares are in a short position, well, it's simply another massacre waiting to happen, the short sellers will make $$ on the way down and the institutional guys (and Musk) will be forced once again to prop up the price
My wife’s company is now making PPE’s and the shuttered GM plant here is Shwa is being retooled to do the same.
Get in the game then bud.... lots of cash to be made on a stock that exhibits such significant volatility, but do understand that when the music stops and you don't liquidate in time, there is nothing in this company that would represent an actual back stop a price that was 1/10 of it's high this year
I wouldn’t touch it right now.
The smart ones bought it when it fell below 400.
Well, those with real money, not pretend CanCon money.
It doesn’t pay dividends. You’re better off buying bank stocks if your plan is to hold. Best time is if they split
Plenty of cheap energy stocks to buy that pay dividends with future growth guarantee.