This Wednesday Tesla kicked off the presentation of results from the heavyweights of Wall Street and the surprise of its accounts has been huge. So much so that the European sector rises in the heat of its figures and now manages to rebound close to 5% from the annual lows it set at the beginning of October.
Analysts expected the American company to announce a net profit of $1,736 million, a figure that would have meant a year-on-year drop of 6%. But Tesla has more than beaten forecasts and its profits in the third quarter of the year have stood at 2,169 million dollars, 25% more than expected by experts and 17% better than the profits of the same period of the previous year.
In addition, Elon Musk’s company confirmed its production plans for new electric models that include a version with more affordable prices, one of the points that investors liked the most. The shares of the American company rise more than 12% in the pre-market and it is the firm in the US market that is being traded the most this Thursday.
The breath of fresh air from Tesla’s results has reached the Old Continent and the European automotive sector is one of the most bullish of the session, with a rise of around 2%. Thanks to this increase, the industry’s price has now managed to rebound by almost 5% from the annual lows (which meant returning to levels from a year ago) that it marked at the beginning of the month.
Renault, Volvo, Forvia, Volkswagen and Valeo register the largest increases in the sector, with increases above 4%although with the exception of Michelin (which suffers a decline of almost 6% on the day), the rest of the firms that make up the sector also advance this Thursday and the majority do so above 2%.
The increases of Renault and Volvo even exceed 6%. In the case of the first, with an increase of 6.6%, this is its best day since February and with it it manages to place its annual profits at 16%. The French company has not only benefited from Tesla’s results, but also from its own results. In them, Renault has confirmed that it will be able to meet the guidance provided by 2024 (operating margin of at least 7.5% and free cash flow of 2.5 billion euros), thanks especially to the demand for new vehicles. This distances itself from the roadmaps that other companies in the sector such as Stellantis, BMW, Mercedes and Volkswagen have established, which were forced to make profit warnings.
For its part, Volvo It also rebounds a little more than 6% and does so from historical lows that its price marked this same Wednesday. Thanks to this promotion, it reduces its annual decline to below 20%. This company has also been forced to reduce its guidance for the year and now even anticipates negative cash flow due to the prospect of lower sales and a weak market.
Forvia’s price also achieved appreciations of more than 5% on the day. In fact, in just over a week the company (which is one of the values of Tressis Eco30 Walletthe investment fund advised by elEconomista.es) rebounds more than 20% from yearly lows which marked last October 17 below 8 euros per share in which it had not been listed since 2009. However, its fall in the year continues to be the largest in the European sector, at 55%.
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