Pandora rises amid Apple's silence

Tesla Vice President George Blankenship speaks at the Tesla factory in Fremont, Calif., during an event to celebrate the release of the new Model S car Friday, June 22, 2012. It is only the second car ever produced by Tesla, and first to be built at Tesla's own factory. less Tesla Vice President George Blankenship speaks at the Tesla factory in Fremont, Calif., during an event to celebrate the release of the new Model S car Friday, June 22, 2012. It is only the second car ever ... more Photo: Erik Verduzco, Special To The Chronicle Photo: Erik Verduzco, Special To The Chronicle Image 1 of / 3 Caption Close Pandora rises amid Apple's silence 1 / 3 Back to Gallery

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Pandora up on Apple's silence

Pandora Media Inc. rose the most in more than a month as the prospect of competition from Apple Inc. receded after the iPod maker unveiled no music product at its iPad Mini event Tuesday.

Pandora of Oakland climbed 8.35 percent to close at $9.86. The Internet radio company was the biggest gainer in the Russell 1000 index.

"This is likely a relief rally for Pandora shares," said James Marsh, an analyst at Piper Jaffray. "The most likely timing would be at the next iPod event, probably 10 months from now. So Pandora shares likely have some reprieve from Apple's threat, at least in the short term."

ELECTRIC CARS

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Tesla challenge seen as unlikely

Tesla Motors Inc., the maker of Model S electric cars that is defending its retailing strategy against lawsuits by state auto dealer groups, probably won't face a challenge from the National Automobile Dealers Association.

"We support the theme of the franchise and would prefer that the manufacturer not sell direct, but it will be up to the states to pursue whatever franchise laws they have," said David Westcott, who was elected this month as chairman of NADA for 2013.

Tesla has modeled its network of stores after Apple Inc.'s outlets. George Blankenship, vice president of sales, is a former real estate executive for Apple who designed that company's retail sites.

Tesla was sued this month by dealer groups in New York and Massachusetts seeking to block its company-owned store and service center model, claiming that the strategy violates franchise laws.

VIDEO

Netflix falls on fewer signups

Netflix Inc. reported new customer signups that missed analysts' projections, a shortfall that forced the company to cut its U.S. growth outlook for the year. The shares fell.

Netflix added 1.16 million new U.S. subscribers in the third quarter, the Los Gatos company said Tuesday. Analysts predicted 1.43 million, the average of 10 estimates in a Bloomberg survey.

Netflix tumbled 16 percent to $56.99 in extended trading after the report came out. The stock added 0.5 percent to $68.22 at the close in New York and has declined 1.5 percent this year.

SOFTWARE

VMware profit tops estimates

VMware Inc., the biggest maker of software that lets computers to run multiple operating systems, reported profit that beat analysts' estimates as it gained corporate customers.

Third-quarter profit excluding some costs was 70 cents per share, Palo Alto's VMware said. That surpassed the average estimate of 63 cents a share, according to data compiled by Bloomberg. Sales rose 20 percent to $1.13 billion, matching the average estimate of analysts.

The company also appointed Jonathan Chadwick chief financial officer, effective Nov. 5. Chadwick was previously at Microsoft Corp. as a vice president and CFO of Skype Inc.