Tesla shares down 5% after Musk press conference
Electric vehicle manufacturer Tesla saw its shares down almost 5%, all-sessions on the IG platform, but NOT at the release of earnings.
These were better than expected for both earnings and sales. There was hardly any reaction at that point on the stock. It was only when Elon Musk commented on Tesla's past quarter, telling the markets that it would cut prices again even after margins had already been squeezed, that shares tumbled.
(Video Transcript)
Tesla shares
Tesla shares were down almost 5% in extended trade late last night, not on the release of earnings. It all started when Elon Musk stood up to talk at the press conference.
Let's take a look at earnings. First of all, these are better than expected, with both the earnings per share and sales earnings coming in at $0.91 per share on revenues of $24.93 billion, ST anticipated EPS of $0.79 and revenues of 24.29 billion.
But look at what happened late in the session for that stock after rising earlier on the trading day and indeed after the markets closed last night, showing a 143% gain from the point at which we started out the year.
The Elon Musk press conference
Then came the tumble. The Elon Musk press conference commented on the test this past quarter. Musk said he would cut prices again even after Tesla's margins had already been squeezed.
But look at what happened late in the session for that stock after rising earlier on the trading day and indeed after the markets closed last night, showing a 143% gain from the point at which we started out the year. Then came the tumble. The Elon Musk press conference commented on the test this past quarter. Musk said he would cut prices again even after Tesla's margins had already been squeezed.
Tesla's automotive gross margin
Tesla's quarterly automotive gross margin fell to 18.1% from 19% in the first quarter of this year. Now, that was in line with street estimates but way below the 26% it reported this time last year. And as a result of that, we saw a loss of 4.67% in extended trade on the platform last night. Look for losses at the start of today's trade or the cash session on Wall Street for Tesla.
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