After weeks rolling out negative news about Tesla, Inc., many in media were undoubtedly shook up when the electric car maker gained almost $49 a share last Thursday following its Wednesday earnings report that showed it utilized less cash than expected, noted Grumpy Editor.
It marked Tesla’s biggest one-day post-earnings rally in more than five years.
Tesla stock on Thursday jumped 16 percent to $349.54 a share, notching the biggest one-day gain since 2013 and wiping out all of short sellers’ profits for the year. The stock closed the week at $348.17.
This led a long-time Tesla shareholder to comment: “The rise in Tesla stock just puts it back where it was a few weeks ago. It fell a lot based on false and misleading information, so now it is back on a normal path.”
Tesla's shares were up more than 1,900 percent from its initial public offering at $17 a share.
Short sellers borrow shares, then sell them, hoping to buy the shares back at a lower price and pocket the difference.
Some recent output, sometimes confusing, from financial writers:
“Electric car maker Tesla Inc. burned through $739.5 million in cash last quarter…”
“The net loss more than doubled from the same quarter a year ago.”
“Tesla reported its largest quarterly loss in its history on Wednesday and burned through $430 million in cash over three months.”
“Tesla CEO Elon Musk reported a record $718 million loss yesterday, but the company’s stock rose after Musk managed to act normal during his earnings call.”
“Wednesday's earnings report also comes as Musk has faced scrutiny for recent erratic behavior.”
Meanwhile, Tesla said it maintained its targeted production of 5,000 Model 3s in a week multiple times in July. The Model 3 is Tesla's first car that's aimed at mass-market buyers. The company said it wants to produce 10,000 Model 3s a week and expects to produce between 50,000 and 55,000 Model 3s this quarter.
IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE…
A WESTERN WITH SALTY WORDS ON TV. Seems Yellowstone starring Kevin Costner on the Paramount Network has resorted to using the F-word and other unneeded offensive (to many) expressions. Too bad script writers work these in for family viewing.
CONSUMER DISTRUST IN BANKING. Consumer distrust buffeted the banking industry's reputation over the past year, bringing an end to a run of positive change in public perception in the years after the financial crisis, according to the annual American Banker/Reputation Institute Survey of Bank Reputations.
MAN WALKS OFF WITH SHARK. A man grabbed and walked off with a 16-inch female shark at the San Antonio Aquarium but police were led to the home of the snatcher who maintained an extensive collection of marine life and the shark was returned to its tank at the aquarium.
NEWSROOM COUNT DROPS. U.S. newsroom employment dropped 23 percent from 2008 to 2017, according to a Pew Research Center analysis of Bureau of Labor Statistics Occupational Employment Statistics data.
MORE HISPANICS BACK TRUMP. The Washington Times noted a Harvard/Harris poll showing a 10-point spike in Hispanic support for President Donald Trump "hasn’t received much attention from the mainstream media." It added, it comes "in the midst of the nationwide controversy over children and families at the U.S.-Mexico border" and "suggests that Hispanics may not be the entrenched liberal voting constituency that Democrats so often imagine."
IHOP SEES BURGER BOOST. Remember the recent widely covered “name change” of pancake restaurant IHOP to a temporary IHOB when the B stood for burgers? In the first three weeks after the announcement hit, IHOP revealed it sold four times more burgers and that burger sales have “remained stable” in the following weeks.
GIs FACE TOUGHER TESTS. U.S. soldiers will be required to take tougher fitness tests by October, 2020. A 50-minute test will involve a strength deadlift, a medicine ball power throw, a set of pushups, a 250-meter "sprint/drag/carry" event, leg tucks, and a two-mile run.
AUTOMOTIVE ISSUES TOP COMPLAINTS. For the sixth consecutive year, consumers complained about automotive issues more than anything else in 2017, reported the Consumer Federation of America which analyzed nearly one million complaints.
CHASE SIMPLIFIES ATM ACTION. Chase Bank said almost all of its 16,000 ATMs around the U.S. now allow people to withdraw cash using their mobile wallets by simply tapping their handsets on the machines, rather than physical debit cards.
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