Tesla Larger Than Expected Loss But Cuts Cap Ex, Reaffirms Delivery Guidance

Super Harley

Baird’s Ben Kallo reiterated his outperform rating on the stock and price target of $355.

“Headline cash balance ($5B) and cash generation ($614M) numbers were extremely favorable, in our view, and should support future growth investments,”

“Investors may focus on soft GAAP margins and the bottom-line miss, though results were adversely impacted by timing of credits (auto gross margin expanded ~200bps sequentially, excluding credits) and other restructuring/foreign exchange impacts.”