Tesla stock hits record high and smashes Wall Street expectations, plus everything

else you missed in business news: CNBC After Hours

CNBC.com's MacKenzie Sigalos brings you the day's top business news headlines. On
today's show, CNBC's Phil Lebeau breaks down the latest delivery numbers from Tesla
and outlines the company's monster week on Wall Street. Also, CNBC's Meg Tirrell
digs into the current state of COVID-19 testing in the U.S. as cases surge and some
public officials reverse reopening steps. Tesla shares soar after reporting big
beat on second-quarter deliveries Tesla shares soared in premarket trading Thursday
after the automaker said it delivered about 90,650 vehicles in the second quarter,
handily beating Wall Street expectations as the electric car maker's sales
withstood the economic downturn better than most competitors. Analysts expected
Tesla to deliver about 72,000 vehicles during the last three months, according to a
consensus of analysts surveyed by FactSet. A broader set of analyst estimates,
compiled by Bloomberg, set higher expectations — 83,000 vehicle deliveries in the
second quarter. Record jobs gain of 4.8 million in June smashes expectations;
unemployment rate falls to 11.1% Nonfarm payrolls soared by 4.8 million in June and
the unemployment rate fell to 11.1% as the U.S. continued its reopening from the
coronavirus pandemic, the Labor Department said Thursday. Economists surveyed by
Dow Jones had been expecting a 2.9 million increase and a jobless rate of 12.4%.
The report was released a day earlier than usual due to the July Fourth holiday.
The jobs growth marked a big leap from the 2.7 million in May, which was revised up
by 190,000. The June total is easily the largest single-month gain in U.S. history.
Texas issues statewide order requiring face coverings Texas Gov. Greg Abbott issued
an executive order Thursday requiring residents across the state to wear a face-
covering in public spaces in counties with 20 or more positive Covid-19 cases.
"Wearing a face covering in public is proven to be one of the most effective ways
we have to slow the spread of COVID-19," Abbott said in a press release. "We have
the ability to keep businesses open and move our economy forward so that Texans can
continue to earn a paycheck, but it requires each of us to do our part to protect
one another — and that means wearing a face-covering in public spaces," he added.

Tesla’s stock soars toward record as Wall Street’s biggest bear raises price target

Shares of Tesla Inc. charged higher toward another record Monday, after even the
most bearish Wall Street analyst lifted his price target following the electric
vehicle maker’s blowout deliveries results. Tesla rival Nio Inc.’s stock NIO,
+22.70% also soared toward a record, in the wake of the China-based EV maker’s
upbeat June sales report. Meanwhile, among other EV makers, shares of Workhorse
Group Inc. WKHS, -15.78% pulled back after a record 11-day win streak and Nikola
Corp. NKLA, -14.46% was headed for a fourth straight loss. Tesla’s stock TSLA,
+13.47% shot up 10.0% in afternoon trading, putting it on track for a fifth
straight gain. The stock had soared 25.9% over the previous four days, the last
three of which produced record closing prices. Analyst Ryan Brinkman at JPMorgan
raised his stock price target by 7.3% to $295, but that was still 78% below current
prices. Brinkman’s target remained the lowest of the 32 analysts surveyed by
FactSet. The price target increase follows Tesla’s report Thursday that it
delivered 90,650 vehicles in the second quarter, well above expectations of 72,000.
Don’t miss: Tesla stock rockets higher as quarterly sales crush expectations. See
related: Some workers complain Tesla has threatened firings if they don’t return to
work. Brinkman said that the deliveries data led Chief Executive Elon Musk to imply
Tesla’s second-quarter report, due out on or about July 22, could produce a
surprise break-even result. But he cautioned investors that any “substantially
better results” could include items that are “one-time or somewhat one-time in
nature,” such as zero-emission regulatory credit sales or the release of deferred
revenue associated with autonomous driving features. Brinkman reiterated the
underweight rating he’s had on Tesla for at least the last three years, citing
“lofty valuation” coupled with “high investor expectations and high execution
risk.” “Our underweight rating considers notable investment positives, including a
highly differentiated business model, appealing product portfolio, and leading-edge
technology, which we believe are more than offset by above-average execution risk
and valuation that seems to be pricing in a lot,” Brinkman wrote in a note to
clients. Of the 32 analysts surveyed by FactSet, 12 have the equivalent of sell
ratings on Tesla, while 11 have the equivalent of hold and 9 have the equivalent of
buy. The average price target is $774.98, or 42% below current prices. Nio’s stock
ran up 23% toward a fifth straight gain in midday trading. That put it on track to
close just shy of its record close of $11.60, which was reached on Sept. 13, 2018,
Nio’s second day as a public company in the U.S. The stock had rallied 35.9% over
the previous four sessions through Thursday. Nio reported last week that June sales
rose 179% from a year ago to 3,740 EVs. That consisted of 2,476 ES6 model EVs,
which are Nio’s small SUVs, and 1,264 ES8 EVs. That took second-quarter sales to
10,331 vehicles, up 191% from a year ago. Separately, DigiTimes reported Monday
that Nio raised funds totaling $1.97 billion in the first half of 2020, and has
acquired a factory in central China as it looks to expand its production capacity
to 4,500 to 5,000 EVs a month from the current rate of 4,000. Not all EV makers
enjoyed gains Monday, as Workhorse’s stock dropped 10.5%, which put the stock in
danger of suffering its first decline in 12 sessions. The stock had rocketed more
than fivefold (up 406%) during its record 11-day win streak through Thursday, which
was supported by the announcement last week of a $70 million securities purchase
agreement from an institutional investor. Nikola’s stock slumped 12.0% Monday. It
has shed 26% amid a four-day losing streak, and has tumbled 37% since the June 9
record close of $79.73. JPMorgan’s Paul Coster had started coverage of the battery-
electric and hydrogen-electric vehicle maker late last month with a neutral rating,
saying the company was poised to disrupt the transportation industry. Despite the
pullbacks, Workhorse’s stock was still up more than sixfold (up 515%) year to date
and Nikola shares were up nearly fivefold 388%). Tesla’s stock has more than
tripled (up 218%) this year and Nio’s stock has nearly tripled (up 186%), while the
S&P 500 index SPX, +1.58% has slipped 1.7%.

Tesla jumps 8% to record high after Elon Musk email shows optimism around a
profitable 2nd quarter

© Reuters / Rebecca Cook Reuters / Rebecca Cook Shares of Tesla jumped as much as
8% to an all-time intraday high of $1,087.50 Tuesday after a leaked email from CEO
Elon Musk showed optimism that the company could break even in the second quarter. 
"Breaking even is looking super tight. Really makes a difference for every car you
build and deliver. Please go all out to ensure victory!" Musk wrote in a Monday
email to employees. The email was first reported by Electrek. Tesla is expected to
report its second quarter vehicle deliveries sometime this week, ahead of the
Fourth of July weekend.  Read more: We spoke with 3 financial experts, who said to
make 4 these trades right now to get ahead of surprising gains when earnings season
starts next month Tesla's stock price has been on a searing rally this year,
hitting multiple all-time highs. On Tuesday, its market capitalization reached
roughly $201 billion, putting it closer than ever to the $214 billion market value
of Toyota, the highest-valued automaker in the world. In the first quarter of the
year, Tesla reported stronger-than-expected vehicle deliveries and a surprise
profit even though it dealt with factory closures in China due to the coronavirus
pandemic. Since, its US factory was also shuttered in April due to a local shelter-
in-place order. Tesla resumed production at the US factory in May, defying the
local shelter-in-place orders.  Tesla has gained roughly 157% year-to-date.  ©
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