Coinspeaker
TSLA Stock Down 8%, Tesla Could Make Li-ion Batteries for Ventilators to Fight COVID-19

On Wednesday, shares of Tesla Inc fell again. Tesla (NASDAQ: TSLA) stock closed the session at $481.56, 8.10% down. After hours, it was 0.84% up, at $485.59. However, in the pre-market today, it has reached $495.06 (+2.80%). The plunge followed moving 5.25% up on Monday. As analysts explain, Tesla (TSLA) stock is downgrading amid the company’s Q1 2020 report. According to Bernstein analyst Toni Sacconaghi, the car manufacturer will probably report poor Q1 deliveries. Besides, its total deliveries this year will be 414,000, below the initial guidance for over 500,000 deliveries.

Because of the coronavirus spread, not many people are buying cars. Tesla, as well as other car producers, is facing low demand. As Wall Street is predicting, Tesla’s deliveries for Q1 2020 will total 91,694 vehicles. This is 18% lower than 112,000 vehicles delivered by Tesla in the fourth quarter of 2019. As for the revenue, it is expected to be somewhere at $6.19 billion.

In addition, Tesla’s manufacturing process is at risk, as the company has temporarily closed its Fremont factory. But even with the suspension, year-over-year growth would still show a significant 46% rise in Tesla’s deliveries.

Tesla Daily Podcast host believes the coronavirus effects will be more obvious in the second quarter of 2020.

He said:

“I think the bigger hit is going to come in Q2. I think people taking delivery in Q1 probably already had finances lined up. They probably had this decision made for a while. Tesla is probably not able to sell as many vehicles from inventory at the end of the quarter, but I don’t think that is going to be some massive hit”

Tesla will release the Q1 2020 report later this week. Then, a more exact analysis will be possible. The report will also influence Tesla stock, likely in a negative way, as the decreased sales and lower revenue will not have much credibility among investors.

Earlier, the U.S. President Donald Trump asked General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), and Tesla to help combat COVID-19 by producing much-needed ventilators. These life-saving devices assist breathing and are critical for treating coronavirus.

ResMed company that produces the ventilators has already ramped up the production. But it needs help with some of the 500 components necessary for more sophisticated ventilators. As ResMed CEO Mick Farrell said, the company has been seeking assistance from many companies, including Tesla.

Farrel stated:

“We’ve had offers from Tesla, from many other automotive manufacturers, from some of the biggest aerospace companies in the world and defense companies that can help with o-rings, screens, and screws.”

In particular, ResMed could use Tesla’s help with lithium-ion batteries. But the companies have not yet discussed such kind of collaboration.

Earlier, Elon Musk said Tesla had procured 1,255 FDA-approved ResMed, Philips & Medtronic ventilators. He later wrote on his Twitter:

We have extra FDA-approved ventilators. Will ship to hospitals worldwide within Tesla delivery regions. Device & shipping cost are free. Only requirement is that the vents are needed immediately for patients, not stored in a warehouse. Please me or @Tesla know.

— Elon Musk (@elonmusk) March 31, 2020

The lack of ventilators is a big problem, especially in cities like New York, where over 43,000 cases and over 1,000 deaths have been confirmed on April 1.

TSLA Stock Down 8%, Tesla Could Make Li-ion Batteries for Ventilators to Fight COVID-19

Similar to Notcoin - Blum - Airdrops In 2024

origin »

241 +