Tesla

Ticker TSLA

Today's data summary

Market closed
% change
-2.69%
Price US dollars
205.36
Change
-5.67
As of 08:50 21 May 2019
Market cap. US dollars
35,033.01 million
As of 08:50 21 May 2019

Latest updates

Wall Street opens lower

Little Girl statue standing in front of the New York Stock Exchange
Getty Images

Wall Street shares have opened much lower, with the Nasdaq down 1.7% at the start of trading, after Google announced it was restricting Huawei's use of its flagship Android smartphone operating system, which means future phones will lose access to some Google apps.

The Dow Jones Industrial Average is 150 points or 0.6% down to 25,614.36. Top of the losers is mining giant Caterpillar, which has fallen 3% to $122.76 on continued US-China trade war fears.

The S&P 500 has slipped 19 points or 0.7% to 2,840.46. US chipset manufacturer Qualcomm heads the losers, sliding 4.8% to $77.62 after joining Google in cutting off supplies to Huawei.

And finally, the tech-heavy Nasdaq dropped 1.7% on open but is now recovering. It is now 103 points or 1.3% lower to 7,713.21.

Top of the losers is electric carmaker Tesla, which has dropped 6.8% to $196.60 after an analyst from Wedbush cut its guidance on the firm and said that Tesla should be focusing on producing more Model 3 cars, instead of expanding into robotaxis and "other sci-fi projects".

Questions over demand for Teslas

Tesla Model 3
Getty Images

It might be worth keeping an eye on shares in Tesla when they start trading at 14:30 BST.

Pre-market trading is indicating a fall of more than 4%.

It follows negative comments from analysts at Wedbush Securities who have cut their target for Tesla shares by $45 to $230 each.

The analysts question Tesla's estimate of demand for its new Model 3 cars. Tesla sees sales of up to 400,000 this year. But analysts at Webbush say between 360,000 and 370,000 is a more realistic target.

The research report also says Tesla should be focusing on its core car business and not expand into insurance and robotaxis.

Tesla gets it money

car
AFP

Electric carmaker Tesla says its $2.7bn (£2bn) offering of stock and bonds was over-subscribed.

It sold $860m in shares and $1.8bn in debt and now has the cash it needs to boost production.

No tariff relief for Tesla

Tesla cars
Getty Images

US trade officials have rejected Tesla's request for relief from President Donald Trump's 25% tariffs on the Chinese-made computer "brain" of its Model 3 electric vehicle, says Reuters.

Tesla's and other tariff exclusion requests for Chinese-made products from aircraft parts to biotechnology instruments were all denied because they were deemed "strategically important" to the "Made in China 2025" program - according to papers seen by the news agency.

Tesla offering priced

Elon musk
Reuters

Tesla has announced the pricing of a $2.3bn fundraising announced yesterday.

It says the offering of 3.1m shares was priced at $244.10 per share.

Founder Elon Musk (pictured) could buy as many as $25m of the shares being offered.

The electric carmaker is also issuing debt as part of the fundraising which is intended to help fuel its expansion plans.

Tesla to raise capital

cars
Getty Images

Away from the Bank of England for a moment.

Electric carmaker Tesla says it is launching a $2bn (£1.5bn) fundraising through $650m in shares and the rest in debt.

Elon Musk, the founder, is expected to buy $10m of the new shares.

The extra funds are needed for its expansion plans.

Tesla shares down

Tesla Model 3
AFP

Electric car maker Tesla's shares are now down 2% to $233.89.

On Wednesday, it was revealed that Tesla's revenues for the first quarter of 2019 included $200m collected from regulatory credits, which wasn't pointed out in the financial results or by chief executive Elon Musk during Tesla's earnings call.

According to the Los Angeles Times, this figure is in an official US government filing known as Form 10-Q.

If you were to take the $200m away from Tesla's revenues, then its losses would have been even worse than the $702m quarterly loss Tesla reported last week.