Tesla Down on Stock Market Despite Very Strong Profit Growth

Electric car manufacturer Tesla was a loser at the opening of the US stock exchanges on Tuesday after its quarterly figures, despite an extreme increase in profits.

 

Investors are satisfied with the profit, but the returns of Elon Musk’s company were slightly worse than generally expected.

The share fell 2.6 percent. Wall Street is very much about quarterly figures on Tuesday anyway. In addition to Tesla, parcel delivery company UPS and toymaker Hasbro also released their results. American investors are also processing new figures from the Dutch chip company NXP, listed in New York.

UPS (plus 10.7 percent) benefited again from resorting to corona-time web stores. During lockdowns, physical stores remained closed, which meant that web shops sold much more. As a result, the demand for parcel services increased. Hasbro also did well under the circumstances. The company has sold more board games and toys. Monopoly, in particular, did well, while many people were confined to their homes due to lockdown measures. The share rose 1.9 percent.

3M, known for post-it notebooks, also came up with results. The industrial conglomerate has benefited from the continued high demand for face masks. Investors, however, put the company on the stock exchange 2.2 percent lower. Industrial group General Electric also fell 2.9 percent.

GE suffered a lot from headwinds from the aviation business last quarter. It makes aircraft engines for companies such as Boeing and Airbus, but due to the current malaise in aviation, there is currently less demand for them.

Overall, the sentiment on Wall Street was slightly negative. The Dow Jones index fell 0.3 percent in the first trading minutes to 33,888 points. The broad S&P 500 fell 0.2 percent to 4,181 points. Technology gauge Nasdaq lost 0.1 percent to 14,131 points.

Investors are also still waiting for the results of Microsoft and Starbucks, among others, to be released after the market. The Federal Reserve, the umbrella of US central banks, will also begin its two-day interest rate meeting on Tuesday.

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