On a call with investors hosted by Goldman Sachs to discuss the bond offering, Musk said he thinks Tesla could eventually produce 700,000 Model 3 cars each year, according to Electrek. Musk previously estimated 500,000. This nugget ultimately got lost in the sauce, but yet again offers up a new number for Tesla to possibly let Wall Street down again.
Tesla stock traded up 2.8% Tuesday.
Avis Gets Rocked
The pain continues for the biggest rental companies amid the proliferation of Uber and ride-sharing services.
Shares of Avis Budget Group Inc. (CAR) crashed 9.8% Tuesday after the company revealed below plan second quarter earnings Monday. Adjusted for one-time items, Avis said it earned 30 cents a share in the quarter, well shy of Wall Street forecasts of 52 cents a share. For the full year, Avis now sees earnings of $2.40 to $2.85 a share, largely below analyst estimates for $2.85 a share.
Rival Hertz (HTZ) saw it shares tumble 6.3% in sympathy.
The ugly miss from Avis comes amid hot debate on Wall Street about the future of rental car companies.
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Hertz Global Holdings Inc. and Avis Budget Group Inc. should have nothing to fear from the proliferation of ride-sharing companies like Uber and Lyft, JP Morgan analysts wrote in a note Friday, Aug. 4.
"The overlap of traditional rental car transactions with ride share and car share solutions is likely to expand in the near future with increasing innovation and technology," analysts led by Samik Chatterjee wrote. "However, with existing scale of fleet operations, rental car companies strike us as natural owners of car sharing solutions, with new entrants likely struggling to achieve threshold volumes in a fragmented market to reach profitability. Moreover, we believe the advent of fully autonomous driving will level the playing field for rental car companies and ride share solutions, making them one and the same, additionally necessitating investments in fleet management services by ride share companies."
McDonald's to Get Fatter in China
McDonald's (MCD) will lift the number of stores in mainland China to 4,500 by the end of 2022, an increase from 2,500 currently, the company said on Tuesday. The store push comes in partnership with Citic and Carlyle Group.
Meanwhile, this could be the next move in McDonald's stock.
Tenet Is Shredded
Shares of Tenet Healthcare (THC) crashed over 14% on Tuesday as it revealed a much larger than expected second quarter loss. If Congress wants to see the impact of their bickering on healthcare, look no further than hospital operators such as Tenet. The key takeaway: weak patient volumes on a high cost base is not a good place to be.
Michael Kors Delivers Some Pretty Numbers
If the handbag's second quarter earnings are any indication, perhaps earnings later in the week from Macy's (M) , Nordstrom (JWN) and Kohl's (KSS) won't be that rough on the eyes. Shares of Michael Kors (KORS) soared 22% after it blew away analyst profit forecasts and lifted its full year outlook. But, a word of caution to the bulls: Michael Kors key same-store sales measure still plunged 5.9% amid heightened competition in the handbag category and weak mall traffic.
Polo Shares Charge Hard
Another mall brand is in the good graces of Wall Street on Tuesday.
Before the market opened, Ralph Lauren Corp. (RL) reported first-quarter adjusted earnings of $1.11 a share, beating the earnings of 95 cents a share analysts surveyed as Factset expected.
The stock was up over 13%.
Still, Ralph Lauren reported total revenue plunged 13% to $1.3 billion, compared to Wall Street's estimates for $1.34 billion. In North America, revenue declined 17%.
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On July 17, Ralph Lauren introduced new CEO Patrice Louvet. The company's former CEO, Stefan Larsson, left in May, citing creative differences with Ralph Lauren, the founder, chairman and chief creative officer.
"I am thrilled to welcome Patrice Louvet as my partner to continue the exciting evolution of our company," Lauren said in a statement on Tuesday.
"While we are addressing challenges in our business, we have significant opportunity ahead and we're moving forward with urgency," Louvet said in the same press release.
Intel Has a Big Day
Intel (INTC) just completed a big deal.
Meanwhile, here is what Intel CEO Brian Krzanich just told TheStreet.
Shares of Netflix (NFLX) were sinking over 3% in after-hours trading on Tuesday after the Walt Disney Company (DIS) stated that it would remove its content from the video streaming giant's platform starting in 2019. Disney will instead launch its own branded, direct-to-consumer streaming service in 2019.
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