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Tesla is taking a beating in after hours trading despite beating projections. What's the reason?


They beat low-balled estimates but not the "whisper" numbers, increasing costs, cash-flow negative for 2014, ongoing share dilution, etc.

The stock was priced for perfection, so it will feel downward pressure on every bump in the road.


First Model S sales decline since 2012, and worst free cash flow (negative too) since Q1 2012 despite last two Qs had positive cash flow.

One can argue how meaningful these are but it is headline glances and lack of strength in other momentum stocks that make first moves.

Some say the lack of strength in momo stocks is related to the alibaba IPO but we have seen sector rotation which may undermine this theory.


slowing sales in the US. They are also slow to deliver their lower priced car which may be moot by the time they do with all the offerings coming down the pipe from established players.

The industry does not simply sit and wait for innovation, they don't bet the farm on one technology, they spread the risk across multiple engine solutions. Until battery technology gives us very fast recharge, average range, and longevity, range extender and hybrids will rule the roost.


After hours trading can be subject to the whims of less-seasoned investors. Consequently, veterans on Wall Street sometimes deride after hours trading as "amateur hour."




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