Tesla analysts consider the TSLA to be down 8% after the production and shipping reports
Tesla (NASDAQ: TSLA) shares fell sharply on Thursday after the release of the Q1 2019 vehicle production and delivery report, which showed a decline of around 30% in shipments and a 12% decline in production. This decline is very prominent in the Model S and Model X.
The shares of electric car makers are always polarized, and this has become more prominent after the release of the Tesla Q1 numbers. Analysts from the bull and bear side have weighed on Tesla’s results for the first quarter. Here are some of what they took:
RBC analysts specifically pay attention to the Model S shipping numbers and the company’s X Model, which they call “very disappointing.” Analysts also predicted that the number of superior vehicles would translate into a shortfall of more than $ 1 billion for the company.
Cowen and Co analysts expressed their objections about company funds, stating that detailed shipping and transit issued by electric car makers showed that “cash is likely to be very low” after Tesla’s payment of convertible bonds worth $ 920 million in cash in early March .
Analysts from JP Morgan gave Tesla an Underweight rating while lowering their price target to $ 200 from $ 215. Analysts noted that “reports on the production & delivery of Tesla 1Q19 vehicles were far worse than expected.” Analysts also noted a decline in the Model S and X in sales, stating that the decline could “imply a slowdown in underlying demand that is not related to temporary deliveries. Difficulties (perhaps due to expiration of tax credits?).”
Canaccord Genuity analysts have taken a more optimistic stance, repeating their Buy ratings while adjusting their price targets from $ 450 to $ 391. Analysts point out that while they are “disappointed by the lack of deliveries in Q1 versus expectations,” they “continue to believe Model variants 3 with lower prices will spur additional demand. ”
Loup Ventures remains quite optimistic about Tesla too, although it acknowledges that the size of the Model S and X miss is a surprise. The company noted that it “focused on the underlying demand,” highlighting Tesla’s statement that he had “enough cash.” The company added that while “it is unlikely that Tesla should raise money in the June-19 quarter, (but) we believe raising money will be the right strategic step for the long term.”
While Tesla shares were beaten on Thursday, there has been no significant downgrade by any broker so far. Tesla shares are currently rated “Buy” or higher by 12 of the 30 brokers that include companies, 7 rate companies with “Hold,” and 11 save “Sell” or lower rank. Part of this might be because Elon Musk had set expectations in early March, when he stated that Tesla might not be profitable this quarter.
Tesla’s production and delivery figures for the first quarter highlighted the growing pain in the company when it began pushing Model 3 into the international market. In Q1 2019, Tesla produced a total of 77,100 vehicles, consisting of 62,950 Models 3 and 14,150 Models S and X. Total shipments dropped to 63,000 vehicles, consisting of around 50,900 Models 3 and 12,100 Models S and X.
At the time of writing, Tesla shares traded at -7.75% at $ 269.19.