Tesla stock is utterly indifferent to whether the company’s losses are bigger or smaller than analysts predict. Wednesday’s miss, at 77 percent, was the biggest ever, according to figures compiled by Bloomberg -- and the stock initially traded up after hours. I looked back at the prior 24 quarters and compared the amount by which Tesla beat or missed the consensus forecast with the next day’s share price move, using data compiled by Bloomberg. The correlation coefficient was all of 0.0374 -- or, among friends, “zero”.Liam Denning
A peculiar situation to say the least. Tesla is burning cash like a tech startup (effectively borrowing money even from future customers through deposits for the Model 3), but they manufacture physical products (cars and batteries) with a slow cycle from innovation to market and high fixed costs. At some point they are going to have to deliver on profits – or at least achieve positive cash-flow like Amazon.