Business
0 Comment(s)
The company logo is pictured on a Tesla Model X electric car in Berlin, Germany, November 13, 2019. REUTERS/Fabrizio Bensch/File Photo
Shares of Tesla (TSLA.O), opens new tab edged higher on Tuesday ahead of the electric car maker's first-quarter results, with analysts expecting its lowest gross profit margin in more than six years.
The stock was up 0.7% at $143 in premarket trading ahead of the report, due after the close of trading. CEO Elon Musk will likely face pointed questions from investors during the post-results conference call about the fate of the so-called Model 2, a low-cost vehicle he had promised in January would be available in 2025.
Reuters exclusively reported earlier this month that Tesla had scrapped plans for the model and shifted focus to building a self-driving robotaxi on the same small-car platform. Musk initially posted on social media that "Reuters is lying," but has yet to identify any inaccuracies or clarify the fate of the model. Investors had pinned hopes for sales growth on the Model 2. The billionaire had also been expected to meet India's Prime Minister Narendra Modi on Monday and announce major investments in an auto factory which was expected to produce a small, affordable model. Musk postponed at the last minute, citing "very heavy Tesla obligations."
Tesla's sales growth is slowing, which is expected to weigh heavily on Tuesday's results. The automaker earlier this month reported an 8.5% decline in deliveries and rising inventories. Over the weekend, it announced the latest in a series of price cuts globally on the Model 3, Model Y and other models, further eating into margins. Several analysts expect Tesla's annual deliveries to fall for the first time in 2024 after years of double-digit growth. The company warned in January that delivery growth would be "notably lower" this year, signaling that price cuts would be insufficient to lift demand.
Tesla shares have lost about 43% so far this year, and is among the worst performers on the S&P 500 index (.SPX), opens new tab. Wall Street expects Tesla's automotive gross margin excluding regulatory credits to be 15.2%, according to 20 analysts polled by Visible Alpha, down from 19% a year earlier and the lowest since the fourth quarter of 2017. Analysts on average see March-quarter revenue down 5.05% to $22.15 billion, according to LSEG data.
Musk has predicted the imminent arrival of fully autonomous cars for years, but may still be years from delivering, given the steep engineering and regulatory challenges. He has also raised more questions with recent social media posts about Tesla's self-driving vehicle strategy. Musk recently teased a "Robotaxi unveil" on "8/8," presumably meaning August 2024, and later posted that going "balls to the wall" on autonomy was a "blindingly obvious" move.
Source: Reuters
The US government says it has revoked some licences that allowed US chip makers to export...
The disruption to container shipping traffic in the Red Sea is increasing and is expected to...
(Ovichnews USA) - U.S. stock index futures edged higher this day as Tesla and Apple led...
A federal judge in Texas on Friday blocked enforcement of new regulations adopted during the Biden administration that sought to overhaul how lenders extend loans and other services to low- and moderate-income Americans.
Read MoreBlackwells Capital upped the pressure on Walt Disney (DIS.N), opens new tab in a long-running boardroom battle, suing the entertainment giant on Thursday for information that may point to possible disclosure violations in dealings with hedge fund ValueAct Capital.
Read MoreAfter a stellar start to the year for stocks, investors are on guard for potential bumps in the second quarter as they gauge whether the Federal Reserve delivers on an expected interest rate cut by June and turn their focus on the health of upcoming earnings.
Read MoreFederal Reserve Chair Jerome Powell says the central bank is not growing more tolerant of higher inflation even though the latest policymaker projections raised the inflation outlook for the year without triggering a tougher monetary-policy response.
Read MoreA federal judge in a Texas court that has become a favorite for conservative challenges to Biden administration policies transferred a lawsuit challenging a rule curbing credit card late fees to a court in Washington, D.C. on Thursday.
Read MoreSam Bankman-Fried, co-founder of the failed crypto exchange FTX, has been sentenced to 25 years in prison for defrauding customers and investors of his now-bankrupt firm.
Read MoreInflows into the nine recently launched exchange-traded funds (ETFs) tied to bitcoin have resumed their upward trajectory this week after the cryptocurrency's price bounced back from its dip last week.
Read MoreThe Fed is close to delivering a rare soft landing for the U.S. economy but it faces yet another fraught challenge: reducing cash in the financial system without disrupting markets.
Read MoreA look at the day ahead in U.S. and global markets from Mike Dolan
Read MoreU.S. intelligence officials in late February told senators working on a biotech security bill that Chinese pharmaceutical firm WuXi AppTec (603259.SS), opens new tab had transferred U.S. intellectual property to Beijing without consent, according to two sources.
Read MoreThe catastrophic bridge collapse that closed the Port of Baltimore to ship traffic is unlikely to trigger a major new U.S. supply chain crisis or spike goods prices, due to ample and growing spare capacity at competing East Coast ports, economists and logistics experts say.
Read MoreTwo small solar manufacturers on Wednesday said they are joining forces to make panels that will enable their customers, U.S. solar project developers, to collect on a lucrative new federal subsidy for American-made clean energy equipment.
Read More
Create an account or log into your account to leave a comment
Comments