Tesla Is In Dire Need Of A Strong Fourth Quarter

Automotive company, Tesla Motors, required a high ramp production and it is expecting the same in the upcoming quarter.

Analysts say that it is difficult to overestimate fourth quarter for the Tesla Motors progress towards its growth targets for the whole year. It is not just the company’s next venture on full electric vehicles but also has few aggressive target sales regarding its total vehicle sales in 2015, most of which will require high sales during the fourth quarter to be achieved.

Model X SUV would begin deliveries at the end of third quarter. It is important for the Tesla car stakeholders because financial investors already have keen insight regarding the quarter’s progress. The automotive organization acknowledged that in its second quarter earnings release, the company planned to come across with 11,500 vehicles in the third quarter. With this direction shared more than a month into third quarter and considering the fact that the organization’s quarterly suggestion has been very precise in the past, it is probable that it would be up to the mentioned mark.

Many figures were posted during the third quarter but not accurate as Tesla. Nevertheless, given the unbelievable extent of the company’s expectations for the last quarter, institutional investors are expected to be most keen towards the outlook for fourth quarter at the time it revealed its third quarter result.

Regarding the whole year, Tesla Motors Inc (NASDAQ:TSLA) acknowledged in second quarter letter to the stakeholders that the organization is willing to put forward 50,000 to 55,000 vehicles. Assuming that the company has delivered around 21,600 vehicles from the starting of the year till now and in the third quarter, it plans to deliver 11,500 cars, it leaves around 19,400 deliveries for the last quarter, Q4.

Tesla’s main objective is to target deliveries between the range of 50,000 to 55,000, which includes the Model S and Model X cars in 2015. At the same time, the company’s equipment fitting and final testing of model X is progressing well. Many dependencies could affect the fourth quarter production and deliveries. The management is still analyzing the potential of many dealers to give high quality production parts in quantities, which are acceptable to meet strategy towards production. The company’s main objective is to build its production ramp stronger for the upcoming quarter among all its competitors. 

The electric vehicle manufacturer is striving for betterment and excellence but companies should understand that investors are skeptical and require proper assessment before any sort of investment. Thus, share prices also matter and should reflect the company’s struggle in positive terms to attract them.

Caterpillar Inc. Short Term Interest Report

Equipment manufacturing company, Caterpillar Inc., revealed its Short Term Interest Report along with the research analysis of  Zacks and Wall Street.

An equipment manufacturing company, Caterpillar Inc., witnessed a fall of 10.3% or 4,616,103 shares due to short interest. The evaluated percentage for the short interest floating shares was 6.7% and the average volume for the daily share transaction of 6,717,931 shares, which recommends six days to cover 40,282,461 short positions, as on August 14, 2015. All the short interest data was revealed by the Financial Industry Regulatory Authority, Inc. (FINRA) on August 25.

Caterpillar Inc (nyse:cat) shares have declined 32.61% during the past 52 weeks. The company survived smoothly, recorded one-year high of $109.73 per share on September 2, 2014, and suffered from one-year low of $70.23, as observed on August 24, 2015. Their calculated 50-day moving average is $79.3 and 200-day moving average is reported at $83.15. Throughout the 13 months, S&P 500 has rallied 5.34%.

On the other hand, cat stock revealed its insider trade buying and selling activities to the SEC, the CFO of the organization, Halverson Bradley M., has traded 11,867 shares at the price of $77.11 per share this year on July 29. The total worth of the transaction was estimated at $915,064. The SEC leaked the insider information in a form 4 filing.

It is observed that the company showed a fall of 1.04% on Tuesday and with no progress towards the gain throughout the day. As the trading started, the stock was at $75.22, after which it reached the height of $75.497 maximum, and declined to $72.03 minimum. Total trade volume of the shares was measured at 9,427,167 per day. The 52-week high of the stock price is $109.73 and $70.32 low. The transaction gave the company market capitalization of $43,426 million along the 602,633,000 outstanding shares.

According to Zacks report regarding the recommendations on Cat stock, the research firm has placed the organization at 3^rd rank with respect to the short-term shares as hold. Similarly, 15 professionals from Wall Street collectively suggested the average rating of 2.6. The latest suggestions by 10 expert analysts recommended a Hold rating. One of the brokerage firms gave a Strong buy. Four experts from Wall Street put forward a strong buy rating.

Currently, the equipment manufacturer is looking forward to make its performance as good as it was in March 2012, when it acquired the Caterpillar Tohoku Ltd. and Platinum Equity, LLC., achieved majority interest in Logistics services in August, the same year. Shareholders are looking forward towards the performance of the company to regain its potential and provide significant results.