Tesla added 1.94% on Tuesday to close at $348.41 per share, despite the group announcing it had fallen short of its third quarter production goals for the new Model 3 sedan. During the period, Tesla only managed to produce 260 Model 3 vehicles and deliver 220 of those, much lower than its production target of 1,500 vehicles. According to the company, the slow production was mainly attributable to production bottlenecks. Despite the disappointing production figures for the Model 3, Tesla did manage to deliver 26,150 vehicles in the quarter ended 30 September 2017. This marks an increase of 4.5% year over year and 17.7% sequentially.
Tesla added 1.98% during the regular session on Wednesday, before moving sharply higher in after-hours trade following the release of better-than-expected results. During the second quarter, Tesla reported revenues of $2.79bn, up from $1.27bn a year ago and sharply higher than estimates of an increase to $2.51bn. However, Tesla reported a net loss of $336mn, or $2.04 per share, slightly higher than a loss of $293mn, or $2.09 per share, a year ago. On an adjusted basis, the loss per share stood at $1.33, much better than expectations of $1.82 per share. Despite Tesla ending the quarter with a cash balance of around $3bn, the group recorded negative free cash flow of $1.16bn during the previous period.
Tesla shed 7.24%, or $25.53, to close at $327.09 per share, dragged down by weaker-than-expected first half delivery numbers. This slump was its largest daily decline since the 22nd of June 2016. Its disappointing delivery figures were mainly attributed to a severe shortfall of new battery packs, which resulted in constrained vehicle manufacturing. Looking forward, the group expects that deliveries of its Model S sedan and Model X SUV would exceed that recorded in the first half of the year. Despite this week’s sharp declines, Tesla’s shares have still surged 53% this year alone.
Tesla released a mixed set of quarterly results on Wednesday, with the group beating on the revenue line, but sharply missing earnings estimates. During the first quarter, the group reported revenue of $2.7bn, more than doubling the $1.15bn recorded a year ago and higher than expectations of an increase to $2.62bn. However, despite the sharp surge in revenue, Tesla recorded a loss of $1.33 per share, marginally better than a loss of $1.45 per share reported a year ago. This was worse than expectations of a loss of 81 cents per share. Looking forward, Tesla confirmed that its Model 3 remains on track to start production in July.
Tesla surged 3.26% to close at $312.39 per share. This move helped pushes Tesla’s market capitalisation higher than General Motors. It now makes Tesla the largest and most valuable car maker in the United States. This also marks the first time in the modern automobile era that the most valuable US car maker is not based in Detroit. By the close of trade, Tesla had a market capitalisation of $50.95bn, slightly higher than GM’s $50.886bn. This comes after the luxury electric car marker surged around 35% over the last month, buoyed by bets that South African born Elon Musk will revolutionise the way human get from point A to point B. Despite the surge in its share price, Tesla remains far smaller than Toyota Motor Corp, which has a market capitalisation of $173bn.
On Wednesday, Elon Musk’s Tesla released a mixed set of quarterly results. The group reported a wider-than-expected loss, despite sales coming in higher than expected. During the fourth quarter of 2016, the group saw sales surge to $2.28bn, up from the $1.21bn recorded a year ago. This is slightly higher than estimates of an increase to $2.19bn. In addition, Tesla’s net loss declined to 78 cents per share, much lower than the $2.44 loss recorded in the previous corresponding period. However, on an adjusted basis, the group recorded a loss of 69 cents per share, worse than expectations of a loss of 43 cents per share. Looking forward, Tesla is ready to start production of its Model 3 sedan, with the group stating that they have enough cash on hand to bring it out. The market was previously concerned about the companies need to raise additional capital.
After the bell, Tesla Motors reported its results for the third quarter, with the share surging 10% in extended trading. The company, led by South African born Elon Musk, saw its net loss triple, but investors cheered the news that the group was set to meet its production targets for the year. During the quarter, Tesla delivered 11,603 vehicles, up from 7,785 in Q3 of 2014. Revenues increased by 10% to $1.24bn, ahead of estimates of $1.21bn. However, due to a sharp increase in research expenses, the group delivered a loss of $229.3mn for the quarter, or $1.78 per share. However, on an adjusted basis, Tesla recorded a loss of $0.58 per share, just short of estimates for a loss of $0.53 per share.
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