Tesla Inc. (NASDAQ: TSLA) announced earnings that were slightly better than expected and said it will make money in the second half. However, odd behavior by CEO Elon Musk on the company’s earnings call hurt the stock after hours. According to Reuters:
Tesla Inc investors gave a rare rebuke to iconoclastic Chief Executive Elon Musk on Wednesday after he cut off analysts asking about profit potential, sending shares down 5 percent despite promises that production of the troubled Model 3 electric car was on track.
Tesla’s future depends on the Model 3 and the company said that it had largely overcome production bottlenecks, with Musk vowing a dramatic turnaround that would reverse losses and generate positive cash flow in just a few months.
The president may block the sales of some products by Chinese telecom companies. According to The Wall Street Journal:
The Trump administration is considering executive action that would restrict some Chinese companies’ ability to sell telecommunications equipment in the U.S., based on national-security concerns, said several people familiar with the matter.
The move, if it happens, would represent a significant escalation of a growing feud between the U.S. and China over tech and telecommunications. The affected firms likely would include Huawei Technologies Co. and ZTE Corp., two of the world’s leading telecommunications equipment makers. They have found themselves increasingly in an international crossfire.
Spotify Technology S.A.’s (NYSE: SPOT) first earnings announcement since it IPO hammered its stock:
Spotify Technology SA’s shares took a hit after hours as its first earnings report as a publicly traded company met the company’s own guidance but fell short of Wall Street expectations.
The report Wednesday was Spotify’s first since going public last month. Shares in the Stockholm-based company fell 7.7% after hours in New York to $156.99.
Spotify added a net four million paid subscribers—its most lucrative type of customer—during the quarter, bringing the total to 75 million. Still, most of its users are on its free, ad-supported tier. Including those, the company said it now has 170 million monthly active users. Both results came at the high end of the company’s forecast.
Sprint Corp.’s (NYSE: S) CEO got a promotion as the company tries to work out a merger with T-Mobile US Inc. (NASDAQ: TMUS). According to Bloomberg:
Japan’s SoftBank Group Corp. named Marcelo Claure chief operating officer, elevating Sprint Corp.’s top executive into a broader role after he negotiated a merger between the U.S. wireless operator and T-Mobile US Inc.
As part of the transition, Claure, 47, will become executive chairman at Sprint and cede the CEO post to Michel Combes, currently the chief financial officer. In his new roles, Claure will continue to work on the Sprint/T-Mobile combination, which still faces a challenging regulatory review in Washington before it can close.
At SoftBank, Claure will become COO under founder Masayoshi Son and focus on improving execution in and among the Japanese company’s portfolio of businesses.
A Chinese telecom company plans a massive IPO. According to The Wall Street Journal:
Xiaomi Corp., one of China’s top smartphone makers, said it would launch its initial public offering in Hong Kong—bringing to the city what is expected to be the world’s biggest IPO this year.
The Thursday filing with Hong Kong’s stock exchange didn’t disclose details about the size of the planned offering or a projected valuation, but the company is seeking to raise at least $10 billion, according to people familiar with the matter. The listing will value Xiaomi at less than the $100 billion figure previously suggested, according to a person familiar with the matter.
A division of General Electric Co. (NYSE: GE) could go bankrupt. According to CNNMoney:
General Electric is still haunted by its disastrous adventure in subprime mortgage lending more than a decade ago.
GE (GE) shut down WMC, its mortgage business, in 2007 after the market for lending to risky borrowers collapsed. But the business still faces legal trouble, including lawsuits from investors and an investigation by the Justice Department.
GE warned in a filing on Tuesday evening that WMC could file for bankruptcy if it loses one of those lawsuits.