Finance
Tesla: Millennial investors dumping shares ahead of earnings
Tesla shares have surged 13% this week, but investors on Robinhood, a no-fee trading platform popular among younger investors, are betting that the positive news has been priced in ahead of the company’s third-quarter results, which are due out after Wednesday’s closing bell.
According to weekly data tracked by Business Insider, Tesla saw the biggest drop in the number of Robinhood investors — with a net of 2,692 investors selling their holdings since last Thursday. Currently, a total of 109,315 investors currently hold Tesla shares, making the electric-car maker the 14th most-popular stock on the app, down one spot from last week.
The recent rally comes as short seller Andrew Left, who filed a lawsuit against Tesla in September over CEO Elon Musk’s taunting of short sellers, did a 180 on the stock and bought shares ahead of the company’s crucial third-quarter earnings report.
Left noted that Tesla is “destroying the competition” in the electric-vehicle market, and that Tesla will generate more than enough cash and prove its sustainability in the near term, echoing what Musk has told employees — that the company will achieve profitability this year.
Earlier this month, Tesla said it delivered 55,840 Model 3 sedans in the third quarter, beating its own guidance of 52,425 and Wall Street’s expected 55,600. The electric-car maker also said it’s on track to deliver 100,000 Model S and Model X vehicles for 2018.
And last week, Tesla announced a lower-priced version of its Model 3 sedan, starting at $45,000. In California, the cheaper model will cost $35,000 after federal and state tax rebates, Musk said.
Now, all eyes are on Tesla’s third-quarter earnings report, which was moved up to Wednesday afternoon.
Wall Street analysts surveyed by Bloomberg are expecting an adjusted loss of $0.15 a share, a significant improvement from the previous quarter, on revenue of $6.32 billion. Their average price target is $301 — about 2% above where shares were trading on Tuesday.
Tesla stock was down 6% this year through Tuesday.
Now read:
Markets Insider
Get the latest Tesla stock price here.
-
Entertainment6 days ago
What’s on the far side of the moon? Not darkness.
-
Business7 days ago
How Rubrik’s IPO paid off big for Greylock VC Asheem Chandna
-
Business6 days ago
TikTok faces a ban in the US, Tesla profits drop and healthcare data leaks
-
Business5 days ago
London’s first defense tech hackathon brings Ukraine war closer to the city’s startups
-
Business7 days ago
Photo-sharing community EyeEm will license users’ photos to train AI if they don’t delete them
-
Entertainment6 days ago
How to watch ‘The Idea of You’: Release date, streaming deals
-
Entertainment5 days ago
Mark Zuckerberg has found a new sense of style. Why?
-
Business5 days ago
Humanoid robots are learning to fall well