LG Energy Solution Flags 26% Jump in Q3 Operating Profit, Crushing Estimates
TSLA sits 27% above its 52-week low of $297.38.
Summary
LG Energy Solution, a key battery supplier to Tesla and GM, expects Q3 operating profit to rise 25.7% to 756 billion won, far above the 309 billion won consensus. The beat is driven by a one-off compensation payment from a North American automaker for missing minimum purchase commitments, plus US IRA tax credits. Excluding those credits, operating profit would have been 339.1 billion won, still above estimates. Revenue likely rose 59% to 9.6 trillion won. This is a positive read-through for EV battery demand and for Tesla's supply chain, though the one-off nature of the gain tempers the signal. Detailed results are due November 3.
At the time of this announcement, TSLA was trading at $377.85 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $1.5T. The 52-week trading range was $297.38 to $498.83. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.