Tesla “will ultimately miss its targets (a production rate of 5,000 Model 3 units a week and profit in the first half of the year) as it remains challenged with its manufacturing process.” “Questions which we believe need to be answered in order for the broader investment community to become more constructive on a name that continues to burn cash and whose funding needs remain subject to debate,” the Evercore ISI analysts said.Īnalysts at Goldman Sachs, led by David Tamberrino, reiterated their sell rating on the stock and a $195 price target. Russell’s questions were not “basic or boring,” but did not address the more granular aspects of the company’s performance and near-term expectations, they said. Additionally, Model 3 net reservations are greater than 450,000, and the company will deploy additional Model 3s to showrooms during Q2, which we think will drive demand.”Īnalysts at Evercore ISI, who called the call a “three-ring circus,” said that ultimately the call did little to add clarity to Tesla investors. “Tesla had its highest-ever Q1 Model S and Model X orders, and gross margin for both vehicles exceeded 25% during the quarter, driven by favorable mix, cost reductions, and FX gains. “Demand continues to be very strong for all three vehicles,” Kallo wrote. Baird’s Ben Kallo, a Tesla bull, said the company’s top- and bottom-line beats got “lost in the noise.” He has a $411 price target on the stock. Some analysts spent minimal time on Musk’s antics and cut to the numbers. The average rating is the equivalent of hold, and the average price target is $308.05, 2.3% above Wednesday’s closing price. Of the 27 analysts who cover Tesla’s stock, nine rate it a buy, 11 rate it a hold, and seven rate it a sell, by FactSet’s count. Three analysts hiked their price targets after the report, according to FactSet, while five lowered theirs. “If Tesla’s minimum cash needs are greater than commonly perceived, this could increase the prospects of a potentially dilutive equity capital raise.” He rates the stock at underweight with a $180 target price, down from $185 prior to the report. “We are concerned whether the problematic launch of the Model 3 means the vehicle is simply delayed or whether it calls into question its ability to generate 25% gross margin, including because of its seemingly greater labor intensity,” Brinkman wrote in a defense of why he thinks questions like these matter. Brinkman also wanted to know the number of workers needed to meet Tesla’s Model 3 production goals. See also: Why investors should look past the Tesla noise and buy the dipīrinkman said he planned to ask the company about whether the Model 3 required Tesla to have a greater minimum cash balance than the $1 billion that Chief Financial Officer Deepak Ahuja once said was the lowest level he’d be comfortable with. He has a sector perform rating on the stock. “The general sentiment was that the defensiveness spoke volumes,” wrote RBC Capital Markets analyst Joseph Spak. “Instead, we expect Tesla to fall today after CEO Elon Musk dismissed multiple analyst questions as ‘dry’ and ‘boring’ (including questions probing what we feel are key topics, such as profitability of the Model 3 and the company’s capital requirements).” Morgan analyst Ryan Brinkman said he initially thought the first-quarter performance, combined with “forceful management guidance for a strong 2H inflection in revenue, margin, and cash flow,” would be enough to “elicit a modestly positive reaction in the shares.”
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |