- Tesla shareholders and analysts are gearing up for the electric automaker's second-quarter delivery figures, which are expected in the coming days
- The results, which follow last quarter's poor numbers , arrive at a unique moment for the automaker; Analysts that prominent Wall Street have been exposed to investors in recent days that while delivery figures will likely meet or exceed expectations, the earnings outlook still looks ugly.
- "We raise our delivery estimate to ~ 85k vehicles from ~ 75k, but still forecast ongoing losses," Barclays analyst Brian Johnson wrote a recent report.
- Track Tesla shares here in real time.
Tesla may release second-quarter delivery figures in the coming week that says Wall Street's expectations. But the automaker's future profitability and questionable underlying demand remain fundamental wildcards.
That's what a share of equity analysts at investment giants from Goldman Sachs to Barclays have conveyed to investors in recent days as Tesla is expected to release quarterly delivery figures in early July. .
"While we believe 2Q1
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As many of his equity analyst peers have done this year amid the stock's months-long decline, Tamberrino cut his target on the stock for the fourth time this year to $ 158 from $ 200. He expects the second quarter was a "better environment" for deliveries, but to an unsustainable degree.
Tamberrino added: "We believe that is the largest question for investors to underwrite this point – what are sustainable demand levels for the Model S, Model X, and Model 3 – and how does it change with the introduction of Model Y production. "
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Tamberrino is far from alone. Elon Musk's automaker's predicted target is below its volatility expectations in recent months, mirrored in its stock price.
After Tesla reported a 31% quarter-over-quarter drop in vehicle deliveries in April, stoking demand concerns, analysts say. the company appears better-positioned for deliveries this time around. The stock is up 27% since plunging to a 2 1/2-year low in early June. But that improved near-term outlook may not be enough to mark a sea change. Expect improved Q2 deliveries to drive shares near term, "the sell-rated UBS analyst Colin Langan told investors on Friday, "But Q2 profits and second half deliveries keep us cautious."
That view prompted Langan to price his third time this year, to $ 160 from $ 200, and his earnings estimates for this year through 2023. He is now expecting a loss of $ 8.00 per share, up from a loss of $ 6.15
Read more: Another Tesla analyst just slashed his price target for the 3rd time this year ahead of critical delivery numbers
Others have conveyed a similar view. Barclays analyst Brian Johnson, long at Tesla bear, delivered his delivery estimates in a Thursday note to clients. But he still sees a quarterly loss in the cards.
"We raise our delivery estimate to ~ 85k vehicles from ~ 75k, but still forecast ongoing losses," Johnson said.
Credit Suisse, for its part, initiated Tesla coverage on Wednesday with an "underperform" rating and bearish $ 189 price target. The analyst believes investors have not fully appreciated the risks around the stock.
"Tesla has struggled in the manufacturing, delivering, and servicing of vehicles, implying risk that its edge in the 'value add' side will be a moot point, "analysts Dan Levy and Robert Moon.
Tesla CEO Elon Musk, as well as bullish equity analysts covering the stock, have sought to put concerns over underlying demand to rest.
In an email to employees last Tuesday, Musk said Tesla was close to setting a record for the number of vehicles delivered in one quarter, Business Insider's Graham Rapier and Mark Matousek reported.
"I think we expect demand to – we are seeing demand return to normal in Q2, "Musk said on the company's April earnings call in response to an analyst's question. "And it might be a little better than normal. It's – I don't have a crystal ball, so it's hard for me to say, but my impression right now is demand is quite solid, quite strong, yes." ] Now read more Tesla coverage from Markets Insider and Business Insider:
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