Apr 4, 2018

Wounded Tesla stops the Wall Street bleeding

Tesla's newest Model 3 production numbers, while still short of its goals, were enough to help bolster the stock price by 6% on Tuesday after a brutal month.

Data: Money.net; Chart: Axios Visuals

Why it matters: Weaker results could have sent market confidence in the automaker reeling. But Tesla is hardly out of the woods. Analyst Karl Brauer of Kelley Blue Book pointed out that "scrutiny of the company’s inner-workings has never been higher."

  • "If Tesla can show consistent growth in volume the market will likely mirror that growth in stock price and overall investor confidence. But tolerance for the brand’s history of missed numbers is likely at an end," he said in a statement circulated to reporters.

ICYMI: The Silicon Valley automaker said yesterday that 2,020 of the mass-market electric sedans rolled off the line in the final week of the first quarter, still shy of the (already scaled-back) goal of 2,500 per week by the end of Q1.

  • However, the company expressed confidence that it could reach 5,000 per week this quarter and build from there.

Bright spot: Tesla reported that 8,180 Model 3s were delivered to customers in the first quarter, and per Bloomberg, that makes it the best-selling electric vehicle in the U.S., outpacing sales of Toyota Prius Prime plug-in hybrid and the Chevy Bolt.

Be smart: As my colleagues Alayna Treene and Steve LeVine pointed out in the Axios stream yesterday...

  • If CEO Elon Musk is to persuade the market to give him more money to build out his ambitious production targets — something most analysts expect him to do, despite the company saying yesterday it doesn't require more funding it doesn't require more funding — he must both sustain this higher production, and get his flagship Model 3s up to 5,000 a week.

Go deeper

Tesla short sellers wish Elon Musk had funding secured at $420

Data: Money.net; Chart: Axios Visuals

Tesla has been among the most derided companies in the world, but CEO Elon Musk has been getting revenge against hated short sellers since the electric car company's June swoon.

Why it matters: Many probably wish Musk had taken the company private at $420 a share, as he said he would in an August 2018 tweet in which he claimed to have "funding secured" for the move.

Go deeperArrowJan 14, 2020

Elon Musk celebrates Tesla shares hitting record $420

Photo: Frederic J. Brown/AFP via Getty Images

Tesla CEO Elon Musk celebrated Monday after the electric carmaker's stock hit $420 per share, a record high, per CNBC.

Why it matters: Beyond Musk's marijuana joke, it's the price referenced in his infamous "funding secured" tweet last year that promised to take the company private, prompting him to relinquish his role as Tesla's chairman and pay a $20 million fine as part of a resulting SEC settlement. In the aftermath, Tesla's stock hit a three-year low of $177 in June.

Go deeper: Tesla's global aspirations are dividing the markets

Keep ReadingArrowDec 23, 2019

Suspension of 737 MAX production expected to cut economic growth

Photo: Smith Collection/Gado/Getty Images

Boeing's plan to suspend production of its 737 MAX jets in January is expected to hit Q1 GDP growth, assuming the suspension lasts through the first quarter and that suppliers slow production.

By the numbers: Wall Street firms estimate the suspension could shave off as much as 0.6 percentage points from Q1 GDP.

Go deeperArrowDec 19, 2019