Wednesday’s Headlines: Tesla’s China sales tumble 27%
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nautilus (NLS) +9.9%
Stitch Fix (SFIX) +6.9%
GoPro (GPRO) +5.5%
The Trade Desk (TTD) +5.1%
Zendesk (ZEN) +4.9%
Moving Down ⬇️
Eventbrite (EB) -5.9%
Calavo Growers (CVGW) -4.7%
Boston Beer Co. (SAM) -4.7%
RH (RH) -4.0%
1. Alarm bells are ringing for Tesla (TSLA) investors (and not because of CEO Elon Musk’s SNL performance) after the electric car maker reported declining China sales. According to figures released by the China Passenger Car Association, Tesla sold fewer than 26,000 cars in China in April, down 27% from March, while domestic manufacturers such as NIO (NIO), Xpeng, and Li Auto all reported improved sales. The U.S.-based company has been the subject of protests from disgruntled owners in China, while no fewer than five Chinese regulatory agencies have questioned the quality of its Shanghai-made cars. May is going to be an important month for Tesla in this important region. Read more here.
2. It was another bad day for the market as the Dow Jones Industrial Index (DIA) suffered its worst day since February on Tuesday. The benchmark index fell 1.4% following an early tech sell-off, which also caused a 2% drop in the Nasdaq (QQQ), before later recovering to close down just 0.1% — the S&P 500 (VOO) dropped 0.9% on the day. The market is holding its breath today, as key U.S. inflation data is due to be released at 8:30 AM ET, which could have a significant impact on investor sentiment towards the economy. Read the full report here.
3. It was an early start for website creator Wix.com (WIX), which unveiled a mixed first-quarter earnings report. The Israel-based firm lost $0.54 per share versus a loss of $0.01 per share a year earlier as research and development and other expenses rose, while revenue actually jumped 41% to $304.1 million. “While businesses increasingly require online commerce capabilities, we believe our growth will continue throughout the year,” the company said, forecasting Q2 revenue of $308-$312 million, up 30-32% from last year. Read the official press release here.
Some more earnings from last night:
Howard Hughes Corp (HHC)
The Texas-based land development company reported a loss of $66.6 million, or $1.20 per diluted share — missing estimates of a loss of $0.57 per share — on revenue of $190.6 million in Q1. 2021 hopes were high though: “We have seen an acceleration in the pace of new home sales, condominium sales and increasing retail net operating income as positive momentum has continued throughout our communities,” said CEO David O’Reilly. Read more here.
It was a mixed quarter from Lemonade in Q1 after it reported total customer growth of 50% YoY, dampened by a widened loss ratio that jumped to 121% following the Texas freeze earlier this year. The company did elaborate on its newest product, Lemonade Car, which it hopes will become a major player in the estimated $300 billion U.S. car insurance market, though no release date was confirmed. Read more here.
The gunshot detection company beat across the board after reporting Q1 net income of $79,000 ($0.01 per share), up from $13,000 a year earlier, while revenue soared 44% YoY to a record $15 million. Its detection technology went live in six new cities last quarter, expanded with five existing customers, and had a robust number of new city and expansion projects staffed and to be deployed in Q2 and early Q3 of this year. Read more here.
Get this week’s full earnings calendar here.