March 01, 2019
Teslas just got cheaper — and so did the company’s stock.
Shares of the electric-car maker tumbled almost 8 percent Friday after Elon Musk unveiled a long-awaited version of the company’s mass-market Model 3 sedan that costs just $35,000.
Tesla stock tanks after Elon Musk unveils cheaper Model 3
Musk, who previously had been charging north of $42,000 for the cheapest Model 3, likewise slashed prices on the Model S and Model X — including an $18,000 price drop for the models in Ludicrous mode.
But to pay for the discounts, Musk said late Thursday, Tesla will be shuttering most of its stores, laying off employees and moving worldwide sales exclusively online.
That, coupled with Tesla backtracking on a promise to deliver a profit during the current quarter, left Wall Street less enthusiastic about the Model 3’s chances to go mainstream — and more worried about margins and slackening demand.
“We think they’re having issues moving vehicles, and they’re experiencing inventory build,” Garrett Nelson, an analyst at CFRA Research, told The Post.
“It’s almost like they’re desperate, like their sales have fallen so much that they’re doing anything to prop up demand.”
DA Davidson analyst Tom Forte noted that investors are also spooked about Tesla’s debt. It paid off a $920 million chunk in cash on Friday — pointing out that the budget Model 3 has much smaller margins than its high-end vehicles.
“Longer term, an argument can be made that there’s some concerns about their ability to fund their debt if they can’t maintain profitability,” Forte said. “They’re going from earning $1.93 last quarter to a loss this quarter. Their profitability issues could very well go beyond this quarter.”
Nelson speculated that the earlier-than-expected arrival of the $35,000 Model 3 might be related to Musk’s scrap with the Securities and Exchange Commission. Earlier this week, the SEC demanded Musk be held in contempt of court for a tweet about Tesla production numbers the watchdog deemed misleading.
Indeed, only hours after the Model 3 announcement, Musk revealed in a court filing that he had brought on former Enron prosecutor John Hueston to his legal team.
Columbia Law School professor John Coffee told The Post that he does not see Musk’s legal team’s shake-up as an admission of concern over the SEC, but rather a reflection of his personality. “It sounds to me consistent with what he usually does, which is change everything every 72 hours,” Coffee said.
Tesla shares finished the day down 7.8 percent, at $294.79.
Business
Global Vehicle to Grid Market 10 Year Forecast Report 2024-2034 - Supportive Government Regulations and Financial Incentives for V2G Deployment
DUBLIN, March 18, 2024 /PRNewswire/ -- The "Vehicle to Grid (V2G) Market Report 2024-2034" report has been added to ResearchAndMarkets.com's offering. World revenue for Vehicle-to-Grid (V2G) Market is forecast to surpass US$ 4.31 billion in 2024, with strong revenue growth through to 2034. Escalating Demand for Electricity, Coupled With a Global Commitment to Reduce Reliance on Fossil Fuels, Resulting in a Surge in the Adoption of Electric VehiclesThe vehicle-to-grid (V2G) market is witnessing unprecedented growth driven by a confluence of factors shaping the future of sustainable transportation and power management. Key drivers include the escalating demand for electricity, coupled with a global commitment to reduce reliance on fossil fuels, resulting in a surge in the adoption of electric vehicles (EVs). This market is characterized by opportunities that lie in the integration of renewable energy sources, such as solar and wind, to meet energy demands, while also addressing challenges associated with the variable nature of these sources.The primary driver for the V2G market is the escalating demand for electricity worldwide. Governments and industries are increasingly recognizing the need for sustainable and low-emission solutions, driving the widespread adoption of EVs. The electrification of the transportation sector not only addresses environmental concerns but also provides a unique opportunity for EVs to serve as mobile energy storage units. This bidirectional flow of power, where EVs can both draw and supply energy to the grid, is a key driver propelling the V2G market forward.Opportunities in the V2G market are abundant, particularly in the integration of renewable energy sources. As countries strive to meet ambitious renewable energy targets, V2G technology becomes an enabler for managing the intermittent nature of solar and wind power. This creates opportunities for smart grid solutions and advanced energy storage systems. Additionally, the idle times of parked EVs present an untapped opportunity for bidirectional ...Full story available on Benzinga.com
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