'Musk is starting to grow up as a CEO,' analyst says after Tesla delivers surprise profit

Record ID: 1438539

  • Title: 'Musk is starting to grow up as a CEO,' analyst says after Tesla delivers surprise profit
  • Date: 24th October 2019
  • Summary: NEW YORK, NEW YORK, UNITED STATES (OCTOBER 24, 2019) (REUTERS) (SOUNDBITE) (English) WEDBUSH SECURITIES EQUITY RESEARCH MANAGING DIRECTOR, DANIEL IVES, SAYING: "Look, I think it's been a rocky year, but if you look at the last six months, you got to give Tesla credit in terms of Model 3 deliveries in Europe, as well as what you're seeing in U.S. Ultimately, a lot of it comes down to Giga 3 in China. China's really going to be the fuel in the engine going forward. And everything investors saw last night is a step in the right direction."
  • Embargoed: 7th November 2019 18:50
  • Keywords: results Wedbush Model 3 electric carmaker earnings Daniel Ives production Elon Musk China factory Tesla Model S shares
  • Location: NEW YORK, NEW YORK, UNITED STATES / BEIJING, AND SHANGHAI, CHINA / UNKNOWN LOCATIONS
  • City: NEW YORK, NEW YORK, UNITED STATES / BEIJING, AND SHANGHAI, CHINA / UNKNOWN LOCATIONS
  • Country: USA
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA004B2GJBF1
  • Aspect Ratio: 16:9
  • Story Text: Tesla shares soared on Thursday (October 24) after the electric carmaker surprised Wall Street by delivering on Chief Executive Officer Elon Musk's promise of a profit in the third quarter even as doubts remained over its long-term prospects.
    As many as five brokerages raised their price targets on Tesla shares, but there were no outright upgrades and the company's average rating on Wall Street remained "hold", with just 11 of 34 analysts recommending investors buy the stock.
    The company's shares rose 18% to $301 in premarket trade. If those gains stick during normal trading, Tesla would again be worth more by market capitalization than General Motors GM.N, making it the United States' most valuable car company.
    Tesla's $1.8 billion junk bond due in August 2025 surged 3 points in price following the results, driving its yield to the lowest since March 2018.
    Investors in the past have shown impatience with the company's serial failures to meet financial and production targets and shares in the company are still down more than a third from their 2018 peak of almost $390.
    The company has been struggling with margins and a new Chinese factory is expected to be help on that front, but analysts said the jury was still out on whether it can sustain the push into profitability.
    (Production: Aleksandra Michalska)
  • Copyright Holder: REUTERS
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