Here are the big stories driving auto stocks today:
Tesla shares more than doubled from lows
Tesla (TSLA) shares were in free fall about a month ago, and investors were wondering if things could get worse.
Fast-forward about a month, and now Tesla stock has more than doubled from its early January multi-year low, hitting $209 in early trading on Thursday.
The main catalyst was Tesla’s earnings report a few weeks ago where Tesla reported beating revenue and profit, as well as news that the Cybertruck is set to begin production later this year.
Even more encouraging was the upcoming earnings conference call, on which CEO Elon Musk said that demand was exceeding supply after the company cut prices in early January. “So far in January we’ve seen the strongest orders we’ve ever seen in our history,” Musk said.
This led to a jump in shares the next day and continued to climb. Add in last week’s FOMC meeting where Fed Chair Jay Powell’s use of the word “disinhibition” lifted tech stocks and the general market on hopes of easier rates, and Tesla shares are climbing steadily above $200.
The next big catalyst for Tesla will be the automaker’s investor day in March, at which Musk has said he will unveil his Master Plan 3, which will detail “the path to a completely sustainable energy future for the Earth.”
The all-new, three-row 2024 Toyota Grand Highlander is shown during the World Premiere event at the Chicago Auto Show on February 8, 2023 in Chicago, Illinois. – Japanese automaker Toyota said on Thursday, February 9, 2023, that its third-quarter net profit fell eight percent, but it left its full-year forecast unchanged. The world’s best-selling carmaker, which last month reshuffled its top executive line-up, reported a net profit of 727.9 billion yen ($5.6 billion), down from 791.7 billion yen a year earlier. (Photo by KAMIL KRZACZYNSKI / AFP) (Photo by KAMIL KRZACZYNSKI / AFP via Getty Images)
Toyota reports earnings and revenue beat
Shares of Toyota (TM) are also climbing higher today, as the world’s largest automaker reported losses in both top and bottom levels earlier today.
For Toyota’s fiscal third quarter, the company reported revenue of $74.6 billion (9.755 trillion yen), which topped estimates, and net profit of $5.54 billion (727.94 billion yen), also above analysts’ expectations. Is.
Toyota reported that margin dropped slightly to 9.8%, as the company said higher selling and administration costs were to blame. And with the chip crisis still affecting operations, the company said in a statement that it is “attempting to quickly evaluate alternative semiconductors and respond to design changes to achieve stable purchases of semiconductors.”
Despite this, the automaker maintained its forecast of sales of 10.4 million vehicles for the fiscal year, and expects a 15% increase in revenue for the year, although reported a 17% decline in net profit compared to a year earlier. hopefully.
Finally, Toyota sold only 12,000 EVs globally in its fiscal Q3, a fraction of what competitors like GM, Ford, and Tesla sell each quarter. Although about 28% of Toyota’s sales include hybrids as well as EVs, the company needs to step up its EV efforts before falling behind other competitors.
That’s probably one reason why CEO Akio Toyoda is stepping down in April, to be replaced by Lexus chief Koji Sato. Toyoda, whose grandfather started the automaker, will be installed as chairman of the board.
Prasad Subramanian is a reporter with Yahoo Finance. you can follow him Twitter and on Instagram,
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