Tuesday, June 27, 2023

"Tesla Deliveries Should Hit Another Record In Q2, So Why The Wave Of TSLA Stock Downgrades?" (TSLA)

From Investor's Business Daily:

Tesla (TSLA) is expected to report global second-quarter delivery data this weekend, giving investors an idea of how the company's policy of price cuts and discounts have done to woo consumers to the brand. Meanwhile, Tesla stock has been downgraded four times ahead of the release, with analysts expecting vehicle price to continue weighing on gross margins.

esla is slated to announce record deliveries for the second quarter, probably on Sunday, July 2. Wall Street predicts Tesla deliveries growing 74% to 445,000, according to FactSet. The big year-over-year increase reflects easy comparisons to Q2 2022, when Tesla's Shanghai plant was shut down for Covid lockdowns for several weeks. Also, the Berlin and Austin, Texas, plants were slowly ramping up output.

On Monday, Deutsche Bank raised its TSLA stock price target to 230 from 200, and maintained a buy rating on the shares.

The firm revised its estimates for Q2 deliveries to 448,000 units, above analyst consensus. Deutsche Bank predicts about 168,000 vehicles sold in North America, 153,000 in China, 87,000 in Europe and 23,000 in the rest of the world.

Meanwhile, Guggenheim also raised the firm's price target on Tesla stock Monday to 112, up from 105, keeping a sell rating. Guggenheim forecasts 446,000 units delivered in Q2. The firm's view is that end-of-quarter vehicle incentives and discounting could boost sales.

The two Tesla stock price hikes come as the global EV giant has been handed four downgrades, including revisions from Goldman Sachs and Morgan Stanley, over the last six days....

....MUCH MORE, IBD packs an amazing amount of information into not-that-many words. 

After getting hammered from $274.45 to $241.05 in the last four sessions the stock is up a bit, $2.04 (+0.85%) to $243.09in late pre-market action