Tesla Inc. shares plunged after a worse-than-expected loss and another major management change cast fresh doubts on Tesla’s future.
Its a bigger slippage than any analyst projected. While Chief Executive Officer Elon Musk is hoping to earn a profit in the three months ending in September, he told shareholders he’ll prioritize other goals.
In spite of delivering a record number of vehicles in the second quarter, Tesla lost $1.12 a share.
Tesla’s stock plummeted as much as 12% in after-hours trading; it was already down 20% for the year through Wednesday’s close.
Tesla shares plummeted in late trading after the electric-car maker posted a worse-than-expected loss and backtracked from a forecast for a return to profit. For our live coverage, check out: https://t.co/Qmx73qMVjb pic.twitter.com/CIcV1jFq6U
— Bloomberg (@business) July 24, 2019
Elon Musk dropped a bombshell about a senior executive role change on a Tesla earnings call, for the second time already this year, Co-Founder J.B. Straubel, who’s been with Tesla since before the billionaire CEO joined the board 15 years ago.
Co-Founder J.B. Straubel is leaving the chief technology officer job and becoming an adviser.
The weak results and Straubel’s step back risk diminishing Musk’s bid to sustainably make money building and selling electric cars.
While Tesla posted profits in the second half of last year, 2019 has been turbulent. A disastrous first three months of deliveries gave way to a surge in the second quarter.
Story on JB: https://t.co/Fl9R1n1rwF
— Dana Hull 👩🏻💻 (@danahull) July 25, 2019
The departure by Straubel from the CTO role he’s had since 2005 reinforces Musk’s reputation for blindsiding investors. He revealed the departure of Chief Financial Officer Deepak Ahuja in a similar fashion in January.
J. B. Straubel, 43, has overseen Tesla’s energy business, its Supercharger network and its battery plant in Nevada. He stressed that he’s not “disappearing,” and Elon Musk promptly announced a replacement.
“I love the team and I love the company and I always will,” Straubel said. “Drew and I have worked closely together for many years and I have total confidence in Drew. I am not going anywhere.”
Musk said, in a letter to shareholders he’s still aiming for positive third-quarter earnings, but will focus on delivering more cars, expanding capacity and generating cash. On the conference call with analysts, the CEO said he expects to be “probably around break-even this quarter, and profitable next quarter.”
By: Abhinav Ranjan, Editorial Desk, DKODING Media
