/Tesla stock slumps despite record quarter: CNBC After Hours – CNBC

Tesla stock slumps despite record quarter: CNBC After Hours – CNBC


CNBC.com’s Pippa Stevens brings you the day’s top business news headlines. On today’s show, Phil LeBeau breaks down Tesla’s record quarter and explains the criticisms of the electric carmaker’s profitability model. Plus, Yun Li dives into GameStop’s $550 million stock sale.

Tesla posts record net income of $438 million, revenue surges by 74%

CEO Elon Musk’s electric vehicle business reported in the first quarter vehicle deliveries of 184,800 Model 3 and Model Y cars, beating expectations and setting a record for Tesla. However, the company also said it produced none of its higher-end Model S sedans or Model X SUVs for the period ending March. It delivered 2,020 older Model S sedans and Model X SUVs from inventory.

On Monday’s earnings call, Musk said the new version of the company’s Model S sedans will finally be delivered to customers starting in May 2021, with Model X deliveries to begin in the third quarter of the year. Musk and CFO Zachary Kirkhorn both said supply chain issues are likely to remain a challenge for Tesla this year.

GameStop shares jump after the Reddit favorite raises $551 million in stock sales

GameStop’s stock price climbed on Tuesday after the video game retailer said it sold 3.5 million additional shares, raising $551 million to speed up the company’s e-commerce transformation.

The stock, favored by the Reddit retail trading crowd, jumped more than 5% on Tuesday after gaining nearly 12% during Monday’s regular trading hours. Shares are up nearly 850% this year.

GameStop announced the “at-the-market” stock offering at the beginning of April, which was viewed as a way to capitalize on its recent head-turning rally that made Wall Street history.

CDC says fully vaccinated people can exercise, hold small gatherings outdoors without masks

The Centers for Disease Control and Prevention revised its public health guidance Tuesday, saying fully vaccinated people can exercise and attend small gatherings outdoors without wearing a face mask.

People two weeks removed from their last vaccine can exercise alone or with other household members outside without a face covering, the CDC said. They can also meet outdoors with a small group of other fully vaccinated people, or a mixture of fully vaccinated and unvaccinated people, the agency added. The guidance did not say what counts as a small gathering.

Dining unmasked at an outdoor restaurant with friends from multiple households is also acceptable, according to the CDC.

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