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

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  • #21355
    Super Harley
    Participant

    electric vehicle and storage company Tesla reported worse…

    [article]1630[/article]

    #21376
    Super Harley
    Participant

    [color=red][size=5][b]Wedbush analyst Daniel Ives TSLA price target to $220 from $230 and maintained a neutral rating on the stock.
    [/b][/size][/color]
    “While demand showed an impressive bounce back this quarter and the company is seeing strong order activity for the third quarter, we continue to believe that the reiteration of 360k to 400k unit guidance for full-year 2019 was a head scratcher since the pure math and demand trajectory makes this an Everest-like uphill battle.”

    “Tesla took a step in the right direction with a strong delivery number on Model 3 success, however the soft gross margin profile will be a gut punch to the bulls hoping for much needed good news on this front,” he wrote in the note.

    #21377
    Super Harley
    Participant

    RBC analyst Joseph Spak Maintained underperform rating on the stock and $190 price target

    “We do not believe this is likely and model third-quarter deliveries -10% q/q, with the fourth-quarter back near second-quarter levels (total 2019 = ~339k),”

    “As a result, we do not believe the next two quarters revenue will grow either from second-quarter levels or on a year-on-year basis. In fact, we don’t see revenue returning to near second-quarter levels until the third quarter of 2020. So growth is likely to be on hiatus and we don’t believe the valuation reflects this,”

    #21378
    Super Harley
    Participant

    [color=red][size=5][b]Needham analyst Rajvindra Gill skeptical about $TSLA guidance.

    [/b][/size][/color]“We are cautious on Tesla’s ability to fulfill these goals as the ramp requires a significant snapback in the second half,”

    “We maintain our underperform rating due to structurally low margins, accelerating competition and lack of sustained profitability. “

    #21379
    Super Harley
    Participant

    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.”

    #21380
    Super Harley
    Participant

    [b]Piper Jaffray’s Alexander Potter reiterated overweight rating cut price target to $368 from $398[/b]

    Describing forward-looking metrics as “all trending in the right direction.”

    On the transition of the company’s chief technology officer JB Straubel to a senior adviser role:

    Straubel is “probably the second-most important person at Tesla, “and even though he is retaining “adviser” status, his departure is nonetheless likely to rattle investors. He offered no explanation, but his amicable mood didn’t suggest dissatisfaction of any kind.”

    #21381
    Super Harley
    Participant

    Before today Tesla shares have fallen 20.4% in 2019, while the S&P 500 SPX, -0.60% has gained 20.5% and the Dow Jones Industrial Average DJIA, -0.56% has gained 16.9%.

    #22245
    ThePitBoss
    Participant

    Tesla earnings release after the market close Wednesday

    The electric car manufacturer is expected to report nearly $6.5 billion in revenue but lose almost 50 cents per share in the third quarter.

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