Tesla's Earnings Twist: Short Seller Jim Chanos Says Q2 Beat Was 'Entirely' Due To This Surprising Factor
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) reported a record quarterly revenue and an earnings beat, but the stock fell after the results. Short seller Jim Chanos noted that the earnings beat was due to a $400 million swing in the 'other income' component. Operating income from the core business was down 3% YoY and 10% QoQ. The energy generation and storage segment saw revenue dipping from $1.53 billion to $1.51 billion. Tesla's stock closed down 0.71% and lost another 4.19% in after-hours trading.
July 20, 2023 | 5:21 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Tesla's Q2 earnings beat was largely due to a $400 million swing in 'other income', according to short seller Jim Chanos. The company's stock fell after the results were announced.
The earnings beat was largely due to a significant swing in 'other income', which is not a sustainable source of income. This, coupled with the fact that operating income from the core business was down 3% YoY and 10% QoQ, and the energy generation and storage segment saw a dip in revenue, could have contributed to the fall in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100