Wall Street extends rebound, Tesla beats on earnings, margins fall. ASX futures 0.5 per cent lower. Zip Co reports. ECB rates decision ahead. Follow here.
DETROIT — Tesla’s second-quarter profit fell 32 per cent from record levels in the first quarter as supply chain issues and pandemic lockdowns in China slowed production of its electric vehicles.
But the Austin, Texas, company still surprised Wall Street with a $2.26 billion net profit for the quarter. Tesla stuck with a prediction of 50 per cent annual vehicle sales growth over the next few years, but said that depends on the supply chain, equipment capacity and other issues.Tesla’s sales from April through June fell to 254,000 vehicles, their lowest quarterly level since the North American autumn last year.
Industry analysts expected lower earnings after the lower sales figures and tweets by CEO Elon Musk about laying off 10 per cent of the company’s workforce due to fears of a recession. In an interview, Musk described new factories in Austin and Berlin as “money furnaces” that were losing billions of dollars because supply chain breakdowns were limiting the number of cars they could produce.
But Tesla exceeded Wall Street expectations from April through June with adjusted earnings of $2.27 per share. Analysts polled by FactSet expected $1.81. Revenue was $16.93 billion, beating estimates of $16.54 billion. Wedbush analyst Dan Ives said the company’s results were “better than feared” for the quarter. The reiteration of the 50 per cent annual sales growth will make bullish investors happy, he wrote in an email.The company said it converted 75 per cent of its bitcoin investment to government currency during the quarter, adding $936 million in cash to its balance sheet. It spent $1.5 billion on the investment last year, but it was unclear how much it has lost.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX drops after Wall Street fallThe Australian share market is in the red in early trade, while Wall Street has ended lower after a Bloomberg report saying tech giant Apple plans to recruit fewer people.
Read more »
ASX to drop as tech stocks pull Wall Street downAustralian shares fell 0.2pc in the first half hour of trade, QBE pricing failure, BHP flags soft year ahead in iron ore, oil trades above $US100, RBA minutes ahead. Follow for updates.
Read more »
ASX set to rise more than 1pc as Wall Street sees best day in weeksAustralian shares are heading for a strong open after earnings powered a rally in US stocks and the Nasdaq surged 2.9 per cent. Follow for updates.
Read more »
ASX set to rise 1.2pc as Wall Street heads for its best day in weeksAustralian shares are heading for a strong open after earnings powered a rally in US stocks and the Nasdaq surged 2.9 per cent.
Read more »
ASX to open higher as Wall Street surges back on strong earningsAustralian shares are heading for a strong open as earnings powered a rally on Wall Street and the Nasdaq surged 2.9 per cent.
Read more »
ASX set to rise more than 1pc as Wall Street sees best day in weeksAustralian shares are heading for a strong open after earnings powered a rally in US stocks and the Nasdaq surged 2.9 per cent. RBA governor Philip Lowe to speak at 9.10 AEST. Follow for updates.
Read more »