Tesla’s (NASDAQ:TSLA) CEO Musk’s Tweets, Stock Takes Another Hit
Elon Musk, Tesla’s CEO, Tweeted that he is removing 2 of the 7 regular/standardcolors currently available for Tesla’s EVs
Tuesday, the financial media reported that the colors, obsidian black and metallic silver, would still be available for potential buyers, but at a higher price than the other models.
The decision follows one of the best days for Tesla shares in nearly a month Monday as investors reacted to analysts’ reports that suggested the Palo Alto, Calif.-based company may/would meet M3 production targets over 2-H of this year.
“We are about to have the most amazing Quarter in our history, building and delivering more than twice as many cars as we did last quarter,” Mr. Musk wrote in an e-Mail to employees that was widely circulated Monday.
Tesla shares were marked 3.3% lower Tuesday and changing hands at 279.44/share, a move that stills leave the stock 16 higher than Friday’s low but still 34.3% off of Mr. Musk’s now-abandoned target to take the company private at ‘420’ per share.
Automotive sector analysts are expecting Tesla, Inc to report a Q-3 EPS (earnings per share) loss of 42c next month before rebounding sharply to 74c a share in the final 3 months of the year.
However, with a cash burn rate of $739-M last Quarter, any chance of meeting profitability estimates will rest on the group’s ability to push M3 production closer to its 6,000 target in order to generate faster end sales and deeper Quarterly cash flows.
Perhaps Tweeting is the best method for Mr. Musk to communicate he is raising the prices for the 2 most popular M3 colors.
Commentary: So, we are nearly 9 months into Y 2018, what is the most amazing thing about Tesla’s stock action?
The Big A: That no matter what the news of the day, both the Bull camp and the Bear camp see it as another checked box in the their win column, Wild!
|NASDAQ:TSLA||279.44||11 September 2018||-6.06||279.47||282||273.55||9,169,900|
|HeffX-LTN Analysis for TSLA:||Overall||Short||Intermediate||Long|
|Bearish (-0.33)||Bearish (-0.48)||Bearish (-0.29)||Neutral (-0.22)|