Tesla shares drop after Q1 update
Tesla shares were 4% lower in after-hours trading last night after the electric car maker revealed the profits impact of lower selling prices and higher raw material and logistics costs.
Revenues rose 24% to $23.3 billion (£18.7 billion) after Tesla delivered 422,875 vehicles, an increase of 36% on the figure for the same quarter a year earlier.
However, net income dropped 24% to $2.5 billion (£2 billion) after a near eight percentage point drop in operating margin to 11.4%.
Tesla, which is led by Elon Musk, said: “Although we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate.
“We expect ongoing cost reduction of our vehicles, including improved production efficiency at our newest factories and lower logistics costs, and remain focused on operating leverage as we scale.”
For 2023, the company said it expects to remain ahead of its long-term 50% compound annual growth rate target with around 1.8 million cars for the year. It added: “We continue to believe that our operating margin will remain among the highest in the industry.”
Tesla car plant
/ via REUTERSFCA launches probe into WANdisco amid concerns over fraud
The UK’s finance watchdog has begun an investigation into beleaguered tech firm WANdisco amid concerns over fraud.
The investigation follows a series of trading updates by WANdisco, which may have materially mis-stated the company’s financial position. An internal investigation into suspected fraud found over $115 million in missing bookings.
WANdisco said it “ has been notified by the Financial Conduct Authority of its commencement of an investigation into the Company.”
“The Board is co-operating with the FCA in this endeavour, in addition to continuing to support the completion of the independent investigation already being undertaken by FRP Advisory.”
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