Tesla Notches Surprise Profit With Higher Revenue, Model 3 Production

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  • #18690
    Super Harley
    Participant

    Electric vehicle and storage company Tesla reported better…

    [article]1136[/article]

    #18713
    ThePitBoss
    Participant

    A wild post earnings day for Tesla

    Open 317.22
    High 321.00
    Low 301.01
    Close 314.86 +26.36 (+9.14%)
    After hours 311.22 −3.64 (-1.16%)

    #18738
    ThePitBoss
    Participant

    Lee Saks @Lee_Saks

    FBI AGENTS EXAMINING WHETHER TESLA MISSTATED INFORMATION ABOUT PRODUCTION OF ITS MODEL 3 SEDANS AND MISLED INVESTORS ABOUT THE CO’S BUSINESS GOING BACK TO EARLY 2017: WSJ

    #18739
    ThePitBoss
    Participant

    [quote=”ThePitBoss” post=8539]Lee Saks @Lee_Saks

    FBI AGENTS EXAMINING WHETHER TESLA MISSTATED INFORMATION ABOUT PRODUCTION OF ITS MODEL 3 SEDANS AND MISLED INVESTORS ABOUT THE CO’S BUSINESS GOING BACK TO EARLY 2017: WSJ[/quote]

    Lee Saks @Lee_Saks

    in response to WSJ story:
    *TESLA: RECEIVED A VOLUNTARY REQUEST FOR DOCUMENTS FROM DOJ: BBG
    *TESLA: WE HAVE NOT RECEIVED A SUBPOENA OR REQUEST FOR TESTIMONY: BBG

    #19673
    ThePitBoss
    Participant

    Tesla Inc. (NASDAQ: TSLA) downgraded to Underperform from Sector Perform and price target was lowered to $245 from $290 at RBC Capital Markets.

    Analyst Joseph Spak writes:

    “It’s not that we don’t believe Tesla can grow over time, our model shows solid LT growth. But the current valuation already considers overly lofty expectations. For instance, let’s assume 1mm [Model 3] units @$55k ASP, 12 percent EBIT margins, no interest/equity raise all by 2025. This is undoubtedly solid earnings, but at a more ‘mature’ 15x P/E, the discounted back value is ~$195, meaning even in an optimistic case at least 1/3rd of today’s price is an ‘Elon premium’.”

    “The company seems to be more tactful with messaging which is a long-term positive, but means downward pressure to growth expectations – which in our view are too high to justify current levels, let alone to add to positions,” wrote Spak.

    In the latest round of cost-cutting measures, Tesla said last week that it would cut 7 percent of its workforce and discontinue production of some other models to focus on the Model 3. Musk also said that the company likely achieved a “tiny profit” in the fourth quarter.

    “For years, Tesla sold the dream of transportation disruption and fantastic growth. This served the stock well turning Tesla into a top 6 (at times top 3) valuable auto OEM despite delivering a fraction of units of others and nary a profit,” wrote Spak.

    “A stock should of course discount future cash flows and the market took the promises of Tesla and their future growth potential to justify lofty valuations while Tesla took capital needed to support their endeavors. But the rubber appears to be hitting the road as the realities of Tesla becoming a volume player, the challenges to scale and deliver high volume at high ASPs/margins are coming to a head.”

    #19681
    ThePitBoss
    Participant

    Missed this little gem in the RBC note:

    “Whether its cutting the price of their lineup by $2k/unit, admission the federal tax credit expiring will hurt, acknowledgment that Tesla can’t sell at $35k Model 3 profitably and costs need to come down, or language around full-self driving – we’d classify recent commentary and actions by the company as more realistic. This is likely to cause a review of model assumptions leading to negative expectation revisions.”

    #19682
    ThePitBoss
    Participant

    More Analyst Sell Ratings Than Buys on Tesla

    With RBC Spak’s rating change to underperform (the equivalent of a sell), there are now more analysts on Wall Street that say sell Tesla, than buy it.

    Eight analysts say “buy,” seven say “hold” and nine now say “sell,” according to TipRanks.com.

    Would think it’s rare for a stock as popular as Tesla to have a majority of analysts say sell.

    The negative rating is still relatively rare, with most analysts typically using a “hold” rating to voice their displeasure with a stock. For comparison, Apple has zero sell ratings, according to TipRanks. https://www.tipranks.com/stocks/tsla/price-target

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