Tesla on the draught: Q3 profits, shorting up shareholder plan to increase Holdings


Tesla on the draught: Q3 profits, shorting up shareholder plan to increase Holdings

Sina Financial News October 29th news, has been controversial Tesla reversed. The Scottish Bailey Gifford Foundation, Tesla's three shareholders, has recently publicly backed Elon Musk by putting more money into Tesla.

According to public information, Tesla CEO Elon Muskettsla's largest shareholder, holds about 20 percent; T. Rowe Price Associates, as a second shareholder, holds about 10 percent; Bailey Gifford holds 7.72 percent. It is the third largest shareholder, and Bailey Gifford partner Nick Thomas is bullish on Musk and thinks that Ma is a good partner. SK is a "visionary and ambitious entrepreneur" who is willing to support him.

Tesla Q3, which has been hard to make money, has achieved profitability unexpectedly. Tesla reported revenue of $6.82 billion in the third quarter, higher than analysts'expectations of $6.31 billion, up 128% from $2.985 billion in the same period last year. Tesla posted a net profit of $516 million in the third quarter, compared with a net loss of $671 million in the same period last year, its third profitable quarter since listing.

In an interview, Zhao Pu, chief strategy officer of Fung Ying Securities, said that the biggest bright spot in Tesla's earnings report and the biggest factor affecting the market was that cash flow changed from negative to positive and increased substantially. An important reason for its long-term bearish outlook has been that Tesla has been burning money but has not made significant improvements in productivity, productivity and gross margins, in which case Tesla is not considered to have found the right model, while positive cash flows have declared its system in good shape.

In Zhao Pu's view, while the cash flow is positive, Tesla's model 3 production has also made a breakthrough. Although it did not achieve a weekly output of 6,000 vehicles, but the maximum weekly output of 5,300 vehicles under the premise of achieving a substantial increase in gross margin and cash flow, leaving the market with the expected space for future capacity will be further enhanced.

"If China's factories really go into production as Musk announced the timetable, it means that the Chinese market is about to open the door to Tesla." Zhao Pu added.

As for the reaction of the capital market, Zhao Pu believes that, from the stock price itself, after all the turbulence since the second quarter, Tesla's share price has actually come to a relatively low position, especially in response to this good news and financial data, the stock price is obviously undervalued, so it is not difficult to understand the claim to continue five years short. Tesla's short selling citron Research Council has changed to do more. If Musk delivers on his promise to overthrow the global auto industry, Tesla will be worth far more than its current market value of $57 billion. (Sina Finance Zhang Lei)


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