Breaking: Tesla Reports Surprise "Profit"
All profits are not the same
Tesla reported a surprise profit for the third quarter this afternoon after the market closed, beating market estimates, including mine, that it would miss guidance for a modest profit and report yet another loss.
This news was enough to send the stock up 20% so far in after-hours trading. Never mind that net income fell 54% versus last year on revenue down 8%, gross profit down 22%, and EBITDA down 7%. Free cash flow plunged 58%.
The best part is the "profit" can be directly traced to emissions credits and deferred revenue which more than offset what otherwise would have been yet another loss.
Wahoo!
Look for more discussion in an upcoming report.
Contact Us:
Disclaimer
This publication is prepared by Bond Angle LLC and is distributed solely to authorized recipients and clients of Bond Angle for their general use. In addition:
I/We have no position(s) in any of the securities referenced in this publication.
Views expressed in this publication accurately reflects my/our personal opinion(s) about the referenced securities and issuers and/or other subject matter as appropriate.
This publication does not contain and is not based on any non-public, material information.
To the best of my/our knowledge, the views expressed in this publication comply with applicable law in the country from which it is posted.
I/We have not been commissioned to write this publication or hold any specific opinion on the securities referenced therein.
Bond Angle does not do business with companies covered in its
publications, and nothing in this publication should be construed as a solicitation to buy or sell any security or product.Bond Angle accepts no liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this publication and/or further communication in relation to this document.