Tesla's stock is surging but some analysts found real problems with its earnings report

  • 📰 CNBC
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 72%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Shares of Tesla are surging after the company reported a surprise profit, but a closer look at the numbers may suggest a cause for concern.

. While many on the Street said it was a solid report, some are calling for caution based on growth concerns and falling margins.

"The one very concerning aspect of the quarter was that top-line growth reversed to a decline, with 3Q:19 deliveries up a mere 2% sequentially from 2Q:19," Bank of America analyst John Murphy wrote in a note to clients, adding that it was "the first decline in seven years for a 'growth' company." He has an underperform rating on the stock, and a $235 target.

But investors chose to focus on Tesla's adjusted earnings per share of $1.86 versus an expected loss of 42 cents per share. Also the electric vehicle maker gave an update on its new Shanghai Gigafactory, where the company said trial production runs have begun. Tesla said it was ahead of schedule on the long-awaited Model Y crossover vehicle, as well. The shares were up 15% in premarket trading Thursday.

"Cost control can help a quarter, but we struggle to understand how spending doesn't have to go up to support Tesla's growth ambitions," he said. He has an underperform rating on the stock and a $220 target.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

The one key metric killing everything none fossil fuel related is tardzilla, evangelical's and republicans. Talk about a headwind, being ruled by the 'idiocracy', trailer park trash, greedy old white people, baby boomers, climate deniers, Tesla has done quite well considering.

ShortTSLA BayAreaBS

cnbc. is always wrong and how I've made my progress in stocks.

Of course GREEDY BIG OIL CARTEL ANTI-CAPITALIST CNBC FRAUDS WOULD FIND SOMETHING NEGATIVE IN A PROFIT, ONLY IF IT IS SOMEONE OR A COMPANY THEY HATE LIKE TESLA THAT COMPETES WITH OIL/GASOLINE

If you Looking for a professional expert photo editor ? I will do professional photoshop editing in 5$ Please Contact Me: MAMAVOTE SheikhHasina BiggBoss13 investment cryptocurrency

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

What to watch: Busiest Q3 earnings day and Tesla shares surge on surprise profitAfter Wall Street managed to eke out small gains Wednesday, a similar session appears ahead today, with U.S. stock futures modestly higher. Wait, what? Tesla pulled a profitable 3rd quarter? I confess I am rooting for ElonMusk . We need to hurry and colonize outer space so I can start mining Low Temperature Diamonds and Void Opals from the asteroid belt before some space cowboy prospector jumps my claim.⛏️🚀
Source: CNBC - 🏆 12. / 72 Read more »

Tesla shares pop the most in 6 years after earnings show its building cash, boosting marginsTesla turned in an unexpectedly profitably third-quarter and better than anticipated progress on its Shanghai factory. Machines fly and Shorts RUN! Perils of a thin market. China’s success story. great
Source: CNBC - 🏆 12. / 72 Read more »