Financial filings with the Securities and Exchange Commission can be long, a little dry, and quite extraneous. For example, American companies include mine-safety disclosures even if they don’t operate mines.
On the legal front, there was a new disclosure about probes by the Justice Department related to self-driving features, management benefits, vehicle range, and personnel decisions. Investors know about a lot of this already. The benefits likely related to a potential house for Elon Musk that wasn’t built. Several entities have looked into self-driving feature marketing and performance.
Financial results impact the stock. Tesla, this past Wednesday, reported weaker-than-expected third-quarter results. Operating-profit margins fell below 8%, down almost 10 percentage points from the same time last year. Wall Street was looking for closer to 9%, according to FactSet. Shares fell more than 9% in response.
Warranty spending is typically included in automotive quarterly reports. Spending and provisions for warranties are up. Nothing is alarming about that. It’s a sign that inflation impacts everyone. Fixing cars is getting more expensive at the same time Tesla is cutting prices for its new vehicles.
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Source: MarketWatch - 🏆 3. / 97 Read more »