Saturday, 21 October 2017
News Tech

Tesla, Like Apple, Told Bulls What They Wanted to Hear About a Big New Product


Financially and valuation-wise, there are some giant differences between Tesla Inc.  (TSLA) and Apple Inc. (AAPL) . But in areas such as product innovation, customer loyalty and a focus on creating a fine-tuned, end-to-end, customer experience, they certainly have some things in common.

And Elon Musk, of course, has drawn more than a few comparisons to Steve Jobs over the years.

Apple is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells GE? Learn more now.

This week, Tesla and Apple have had something else in common: They’ve each seen their shares surge after beating June quarter estimates and (more importantly) calming fears about pending production and sales ramps for a very important new product.

Tesla reported Q2 revenue of $2.79 billion (up 120% annually) and adjusted EPS of negative $1.33, beating consensus analyst estimates of $2.52 billion and negative $1.57. Though the company had announced its Q2 vehicle deliveries a month ago, revenue beat expectations thanks to the sale of $100 million in zero-emission vehicle (ZEV) credits, as well as an increase in the portion of car sales for which revenue was fully recognized up-front rather than subject to lease accounting. EPS benefited from the aforementioned factors, as well as slightly lower-than-expected operating expenses.

Shares rose 7.4% in after-hours trading to $350.02. Short-covering could be helping with the gains: 28 million shares (23% of Tesla’s float) were shorted as of July 14.



Source link

Post Comment