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Elon Musk says Tesla will be profitable in Q3 and Q4

Tesla is one of the more interesting companies for Wall Street that had an interesting couple of months this year — and it seems even tweets from Elon Musk, who said that the company will be profitable in the back half of the year, may be enough to swing its stock.
The Tesla and SpaceX founder sent a tweet very early this morning that the company would be profitable and cash-flow positive in the third and fourth quarter this year. Tesla is known for setting ambitious targets and forecasts, especially as it looks to ramp up Model 3 production to around 2,500 vehicles per week. Musk said he took direct control of Model 3 production earlier this month in a note to employees, also sent out at around 3 a.m. pacific time. Tesla’s shares were up slightly, gaining around 2% in trading today.

The Economist used to be boring, but smart with a wicked dry wit. Now it’s just boring (sigh). Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money.
— Elon Musk (@elonmusk) April 13, 2018

Tesla saw a small bump in its stock throughout the day. While it could be for a variety of reasons, Musk’s data point may have offered a small amount of clarity (and optimism) around whether the company will be able to eventually turn a profit. The tweet was fired off as a response to a story by The Economist that said the company may have to raise additional capital at some point, according to banking firm Jeffries. (It was also quite snarky.)
On Tesla’s last call to discuss the company’s quarterly results with Wall Street analysts, Musk said that the company would begin generating “positive quarterly operating income on a sustained basis,” and said he was “cautiously optimistic” that the company would be GAAP profitable. Musk said the company wanted to hit a production target of 5,000 Model 3 vehicles per week at some point in 2018, though did not give a specific time frame. The tweet, while fired off as a response to a story by The Economist, appears to offer another small data point as to when it might happen.
Earlier this month, Tesla fell back behind Ford in terms of its market cap as some pressure has hit the stock. Tesla has had to address a fatal crash involving its autopilot, in addition to a voluntary recall of 123,000 Model S vehicles. There is some skepticism around whether Tesla will hit its production targets from Wall Street (making cars is hard, it seems).

Elon Musk says Tesla will be profitable in Q3 and Q4

Twitter is soaring today as its stock hits a high for the year

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Twitter is soaring today as its stock hits a high for the year

Square’s dominant year hits a snag

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Square’s dominant year hits a snag

Spiegel hopes to save Snapchat with an algorithmic feed

 Snap got destroyed by Wall Street today after a horrible Q3 earnings where revenue and user growth fell well under expectations. So to get things going in the right direction, CEO Evan Spiegel says Snapchat will make some bold moves not everyone will like. Read More

Spiegel hopes to save Snapchat with an algorithmic feed

A critical metric for Alphabet’s success is suddenly showing signs of life

 Alphabet delivered a knockout quarter today, handily beating the estimates from Wall Street — but, perhaps more importantly, showing actual growth in a critical metric that has seen a consistent decline for quite some time.
Google’s cost-per-click — a metric that helps define how valuable its ads are — grew 1% quarter-over-quarter this year. While still down 18%… Read More

A critical metric for Alphabet’s success is suddenly showing signs of life