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Offbeat Tesla stock plunges as Wall Street dismisses Model 3 milestone

21:06  03 july  2018
21:06  03 july  2018 Source:   cnbc.com

Battery in fatal Tesla crash in Florida reignited twice -NTSB report

  Battery in fatal Tesla crash in Florida reignited twice -NTSB report A Tesla Inc Model S involved in a May 8 fatal high-speed crash in Florida reignited twice after firefighters extinguished a fire in the electric vehicle, the National Transportation Safety Board (NTSB) said in a preliminary report on Tuesday. The report said the vehicle was traveling 116 miles per hour seconds before it crashed into a metal light pole. The Fort Lauderdale Fire Department found the vehicle fully engulfed in flames and extinguished the vehicle fire using 200–300 gallons of water and foam, the NTSB said.The report said during removal of the car from the scene, the battery reignited and was quickly extinguished.

The value of Tesla Inc. stock plunged by about .4 billion over a 48-hour period this week because delivery of the Model 3 will be delayed. Although Tesla ’s .98 billion third quarter revenue slightly beat Wall Street analysts’ estimates, the company lost 1 million, or .92 per share.

The comments -- part of a bizarre, heated conference call after the close Wednesday -- sent the electric-car maker’s stock plunging . The CEO demonstrated willingness to bite the hand that feeds by ridiculing representatives of Wall Street ’s biggest banks, some of which have helped the company

Several Wall Street firms are downplaying Tesla's Model 3 production milestone, remaining skeptical over the carmaker's finances and demand trends.

Tesla said Monday it reached its one-week production goal of 5,000 Model 3 cars for the last week of the June quarter. But the company fell short on its second-quarter deliveries by posting 40,740 vehicles delivered versus the Wall Street consensus of approximately 51,000.

The company’s shares declined 2.3 percent Monday after opening up 5 percent at the beginning of the day’s session.

Tesla shares sank 7.2 percent Tuesday.

Reuters also reported Tuesday that Tesla shifted workers from other departments, including the Model S production line, to meet its Model 3 production target.

Tesla is asking Model 3 reservation holders for another $2,500 to order their cars

  Tesla is asking Model 3 reservation holders for another $2,500 to order their cars .Would-be Model 3 owners already put down a $1,000 refundable deposit to "reserve" one of Tesla's Model 3s. Those reservation holders must pay an additional $2,500 to turn their reservations into an order , at which point the original $1,000 deposit goes towards the overall payment for the car. Buyers can cancel their orders within 3 days for a full refund, the company confirmed, but after that their money is Tesla’s for good.Buyers who confirm won't immediately get a specific delivery date, but Tesla's email says delivery could happen "in as soon as 2-4 months.

While the market didn’t mind Tesla ’s Q1 2018 financial results with the stock being up ~1% after they released the results, the market took offense at CEO Elon Musk shutting down Wall Street analysts and taking a swipe at day traders in the conference call following the results. Home Solar Power.

Tesla stock falls another 5 percent ahead of Model 3 production report. It may benefit from lowered expectations. Three Wall Street analysts were upbeat about Tesla beating the production estimates.

Goldman Sachs was not impressed with the company’s announcement and reiterated its sell rating for Tesla shares, noting net Model 3 reservations declined to 420,000 from 455,000 last year.

“Model 3 deliveries did miss our bearish estimates and we see the incremental color on Model 3 net reservations (where the company showed its first declining data point) as incrementally negative,” analyst David Tamberrino said in a note to clients Tuesday.

Exclusive: Tesla hits Model 3 manufacturing milestone, hours after deadline -- factory sources

  Exclusive: Tesla hits Model 3 manufacturing milestone, hours after deadline -- factory sources <p>Tesla Inc nearly produced 5,000 Model 3 electric sedans in the last week of its second quarter, with the final car rolling off the assembly line on Sunday morning, several hours after the midnight goal set by Chief Executive Elon Musk, two workers at the factory told Reuters.</p>Tesla Inc (TSLA.O) nearly produced 5,000 Model 3 electric sedans in the last week of its second quarter, with the final car rolling off the assembly line on Sunday morning, several hours after the midnight goal set by Chief Executive Elon Musk, two workers at the factory told Reuters.

Tesla ’s (TSLA) stock price took a tumble (down 6% at the time of writing) today following the company’s fourth-quarter financial results released yesterday. The concern doesn’t seem to be about the actual results as much as the outlook on the Model 3 production ramp up. Home Solar Power.

Shares of Tesla (NASDAQ: TSLA) continue to freefall on Wednesday as the once high-flying stock plunged to a 52-week low amid questions related to Model 3 pro Still, for some Wall Street analysts like Adam Jonas of Morgan Stanley, they see the slump as a prime buying opportunity.

Tamberrino reiterated his $195 6-month price target for Tesla shares, representing 42 percent downside to Monday’s close.

One Wall Street analyst believes Tesla shares will drop further when the company reports its second-quarter earnings results. 

“Given the softer overall trend to deliveries and implied negative read-across to 2Q earnings and cash flow, we expect a negative reaction in TSLA shares,” J.P. Morgan analyst Ryan Brinkman said a note to clients Tuesday.

Tesla hits Model 3 production target, backs profit view

  Tesla hits Model 3 production target, backs profit view Tesla crossed its long-elusive target of producing 5,000 Model 3 cars in a week after several delays, and reaffirmed its positive cash flow and profit forecast for the rest of the year. Tesla also said it expects to increase production to 6,000 per week by late August, indicating that it is overcoming the production issues that plagued the company for several months.The electric carmaker's shares rose 5 percent to $361 in early trading, after the company said it produced 5,031 Model 3 cars in the last seven days of its second quarter.

Many analysts believe Tesla will turn to Wall Street for more cash because it burned through so much trying to make the Model 3 , which is supposed to be its first mass-market Following the call, Goldman Sachs reiterated its "sell" rating on Tesla and repeated its belief that the stock will plunge to 5.

Access insights and guidance from our Wall Street pros. Tesla Could Miss Model 3 Target Again but Here's Why That May Not Matter. 3 Savvy Stocks to Buy as Prices Plunge . Tesla 's Big Milestone Date Is Quickly Approaching.

Brinkman reiterated his underweight rating and $180 price target for the carmaker’s shares.

In similar fashion, Citi Research reaffirmed its “neutral/high risk” rating Tesla shares, saying Monday’s production announcement doesn’t significantly change the company’s finances.

“We don’t believe today’s update will settle bull/bear debates about sustainable production/demand, FCF generating ability and the risks tied to Tesla’s balance sheet position,” analyst Itay Michaeli said in a note to clients Monday.

Michaeli reaffirmed his $313 price target for Tesla shares.

To be sure, not everyone on Wall Street is negative on Tesla’s prospects. Nomura Instinet reiterated its buy rating and $450 price target for Tesla shares on Monday.

“Tesla hit its production target of 5,000 Model 3’s in the final week of the quarter, which is an important milestone that we believe reestablishes some credibility and positions the company for profitability in the second half of the year,” analyst Romit Shah said in the note. “That said, we continue to expect TSLA shares to be volatile near term; we see current weakness as an opportunity to further accumulate shares.”

The company's shares are up 8 percent this year through Monday versus the S&P 500’s 2 percent gain.

When asked for comment, a Tesla spokesperson referred to the company's second-quarter vehicle production press release, which said the carmaker produced 5,031 Model 3 vehicles in the last seven days of the quarter, while also producing 1,913 Model S and X vehicles in the same time period.

Tesla buyers hear clock ticking as $7,500 tax credit phases out .
The clock is ticking for Tesla Inc. customers looking for incentives on their purchase. The $7,500 federal tax credit for electric vehicles is set to start phasing out for the Model S, Model X, and Model 3 after Dec. 31, according to the company’s website. The Palo Alto, California-based carmaker is the first to trigger the reduced incentive in the U.S.While tax credits have helped boost electric vehicle demand in the U.S., they remain only 1.1 percent of the market. The federal government support was designed to decline once manufacturers reach higher production levels and reduce their costs.

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