Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Korea Stock Exchange  >  LG Chem, Ltd.    A051910   KR7051910008

LG CHEM, LTD.

(A051910)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Tesla sets revenue record, makes profit thanks to pollution credit sales to rivals

10/21/2020 | 08:21pm EST
The logo of Tesla is seen at a Tesla Supercharger station in Dietikon

(Reuters) - Tesla Inc on Wednesday reported its fifth consecutive quarterly profit on record revenue of $8.8 billion, boosted by an uptick in vehicle deliveries and sales of environmental regulatory credits to other automakers.

The electric car maker also affirmed its target to deliver half a million vehicles by the end of this year, a goal that will require it to significantly ramp up vehicle sales in the fourth quarter.

Shares were up 2.5% at $433.88 in extended trade as the carmaker beat analysts' estimates.

Tesla said it had the capacity installed to produce and deliver 500,000 vehicles this year, but added that achieving its goal has become more difficult.

"Achieving this target depends primarily on quarter over quarter increases in Model Y and Shanghai production," the company said.

Asked by an analyst during a conference call whether Tesla aimed to deliver 840,000 to 1 million vehicles next year, based on its factories' current maximum capacity, Chief Executive Officer Elon Musk responded the target was "in that vicinity," while another Tesla executive said the company would provide guidance next quarter.

Tesla has defied a downward trend in the wider auto industry in 2020 and bucked a pandemic and economic upheaval with steady sales and profitable quarters, sending shares up around 400% this year.

At $394.5 billion, Tesla's market capitalization has become the largest among all global automakers, despite the company trailing rivals in sales, revenue and profit.

Tesla's ascent highlights investor confidence in the future of electric vehicles and the company's shift from niche carmaker to global leader in clean cars.

But Craig Irwin, an analyst with Roth Capital Partners, cautioned that Tesla's lead could soon narrow.

"The company is still valued incredibly richly, like it's operating in a vacuum, yet competitors are working furiously to catch up," he said, referring to more than 400 new electric vehicle models scheduled to hit the roads by 2024.

General Motors Co on Wednesday revealed an electric version of its Hummer pickup truck that will compete with Tesla's futuristic Cybertruck, which is scheduled to go into production next year.

Musk on Wednesday said Cybertruck orders will be delivered in 2022, or toward the end of 2021 the earliest.

Tesla in September outlined plans to cut battery production costs by producing larger cells in-house to power a growing fleet, including heavier, more energy-intense vehicles.

But Musk on Wednesday said the company would not depend on internal cell production before 2022, suggesting that Tesla will continue to rely on its external battery suppliers Panasonic Corp, LG Chem and CATL.

He also said Tesla would roll out what it calls "Full Self Driving" more widely by the end of this year. Tesla on Wednesday launched the feature for an undisclosed number of "expert, careful" drivers in a pilot launch.

Musk has been promising fully autonomous features for several years and Tesla buyers can pay $8,000 in hopes of eventually receiving the upgrade.

Safety groups have criticized the term "Full Self Driving" as dangerously misleading, with the system expected to be capable of functioning only in limited-use cases.

Revenue rose to a record $8.77 billion from $6.30 billion a year earlier. Analysts had expected revenue of $8.36 billion, according to IBES data from Refinitiv.

Excluding items, Tesla posted a profit of 76 cents per share. It reported net income of $331 million, or $874 million excluding stock-based compensation awards given to Musk.

Revenue from the sale of regulatory credits made up $397 million. Without that revenue, Tesla would not have achieved a profitable quarter.

So far this year, regulatory credits account for $1.18 billion, or 7% of total automotive revenue.

Pollution credits became a more meaningful source of revenue for Tesla about a year ago when California and other U.S. states increased the mandatory share of zero-emission vehicles sold per manufacturer. As competitors begin selling more electric vehicles, that revenue is expected to dry up.

With recovery in the United States sluggish and Europe struggling with a second bout of the virus outbreak, some analysts have pinned their hopes for Tesla on growth on China, which has begun to recover as consumers shake off the pandemic's effects.

Tesla does not break out regional sales, but data from China's auto industry association, CPCA, showed Tesla Model 3 sedan sales remained roughly flat from July to September. Overall, Tesla sold around 34,100 Shanghai-made Model 3s in the third quarter.

Tesla on Wednesday said Model 3 production at its Shanghai plant has increased to 250,000 vehicles a year, its targeted production rate.

Its main factory in Fremont, California, has a capacity of 590,000 vehicles, including the Model Y.

The carmaker said it would focus on improving manufacturing cost and efficiency and increase capacity as quickly as possible.

Tesla is building additional vehicle and battery plants in Berlin, Germany, and Austin, Texas, to ramp up production of existing vehicles and launch new models, including its Cybertruck and Semi truck.

Production at the German factory is expected to start in 2021.

(Reporting by Akanksha Rana in Bengaluru and Tina Bellon in New York; Editing by Bernard Orr, Peter Henderson and Matthew Lewis)

By Tina Bellon and Akanksha Rana


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
CONTEMPORARY AMPEREX TECHNOLOGY CO., LIMITED 0.67% 254.7 End-of-day quote.139.38%
GENERAL MOTORS COMPANY 3.77% 46.46 Delayed Quote.22.32%
LG CHEM, LTD. 6.82% 799000 End-of-day quote.151.65%
LG CORP. 1.71% 77200 End-of-day quote.4.61%
PANASONIC CORPORATION 1.25% 1097 End-of-day quote.6.56%
TESLA, INC. 6.43% 555.38 Delayed Quote.563.81%
All news about LG CHEM, LTD.
11/23S.Korea shares close at record high as Samsung Electronics, SK Hynix surge
RE
11/19MARY BARRA : GM's Barra accelerates 'all out pursuit of global EV leadership'
RE
11/18Hyundai faces lawsuit over EV fires as GM launches recall
RE
11/18FACTBOX : Battery fires put automakers in hot seat over EVs
RE
11/18GM WILL ANNOUNCE BOOSTED SPENDING PL : sources
RE
11/18S.Korea shares rise on hopes of Fed's policy support; rising virus cases weig..
RE
11/17Hyundai faces lawsuit over EV fires as GM launches recall
RE
11/15Lg chem shares open down 3.3% after gm announced bolt ev recall over fire ris..
RE
11/13GM recalling nearly 69,000 Bolt EVs for fire risks
RE
11/13GM Recalls Bolt Electric Vehicle for Fire Risk
DJ
More news
Financials
Sales 2020 30 218 B 27,3 B 27,3 B
Net income 2020 1 517 B 1,37 B 1,37 B
Net Debt 2020 8 016 B 7,24 B 7,24 B
P/E ratio 2020 38,8x
Yield 2020 0,85%
Capitalization 58 010 B 52 205 M 52 383 M
EV / Sales 2020 1 920x
EV / Sales 2021 1 525x
Nbr of Employees -
Free-Float 58,0%
Chart LG CHEM, LTD.
Duration : Period :
LG Chem, Ltd. Technical Analysis Chart | A051910 | KR7051910008 | MarketScreener
Technical analysis trends LG CHEM, LTD.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 30
Average target price 900 586,21 KRW
Last Close Price 799 000,00 KRW
Spread / Highest target 50,2%
Spread / Average Target 12,7%
Spread / Lowest Target -43,7%
EPS Revisions
Managers
NameTitle
Hak Cheol Shin Vice Chairman & Chief Executive Officer
Okdong Son President
Jin-Soo Park Vice Chairman
Dong-Seok Cha Chief Financial Officer & Director
Ki-Soo No CTO & President-Executive Board
Sector and Competitors
1st jan.Capitalization (M$)
LG CHEM, LTD.151.65%48 725
DOW INC.2.21%41 494
FORMOSA PLASTICS CORPORATION-12.22%19 800
FORMOSA CHEMICALS & FIBRE CORPORATION-9.83%16 390
COVESTRO AG11.53%10 544
LOTTE CHEMICAL CORPORATION29.02%8 875