The U.S.-based automaker Tesla Motors is immune to bad news and that is both a good thing and a bad thing. A good thing because it does not take any hurried steps in case of bad news and conducts its business as usual. A bad thing because it does not take a prompt action even after a disaster happens, like in 2008.
Tesla to see a huge loss in Q3 earnings next week
Next week, the automaker is going to release its Q3 earnings and analysts are anticipating the biggest loss of the year – over $3 a share – for Tesla. The electric car making company has been making money quite rarely these months and the third quarter of this year will be pretty negative. The automaker will have a lot to lose even if see less than expected loss.
Over the past month, the shares of the EV making giant have been sliding. We are talking about the same company which for a short while threatened even Ford and Fiat Chrysler Automobiles with its stock and at one point, put the automaker General Motors behind it.
Tesla stock has proven in the past that betting on a risk has been lucrative for it. Even the investors and shareholders are now used to the shocking changes in the value of the stock. A report by news site Business Insider notes, “Unless they’re tremendously bullish or bearish, investors can reasonably assume that if Tesla gives up $100 per share in a week, it will get it back, at some point. Analysts’ price targets are all over the place, but few expect the company to plunge below $150. And if it did, then the ultimate un-priced-in risk would be on the table: bankruptcy.”
Tesla has been struggling with deliveries for a long time
The automaker has always struggled with deliveries, while other companies have been quite at it. The yearly as well as monthly sales are monitored by other car making companies but the U.S.-based electric car maker does not follow that fundamental. An example is the Model X SUV, which came three years late.
The EV was so difficult to assemble that the automaker was in “production hell” for the first six months of 2016, according to Elon Musk, the CEO of Tesla. In addition to this, the electric carmaker suffered a nightmare in 2008. The only indication that the automaker was immune to all kinds of crisis was the value of its stock, which stayed steady throughout its life (past and present). As for recommendation for the EV maker – it should focus on delivering all the promised cars on time to keep being the world’s largest EV maker.