From ZeroHedge:
Unlike yesterday's ritualistic(and symbolic) suicide by dozens of sellside analysts who lost all credibility holding on to a buy rating into the second consecutive NFLX implosion, this morning's Tesla post-mortem is a decidedly more pleasant affair for the sellside: Tesla stock is 8% higher in premarket trading, with electric-vehicle peers also rising, after TSLA posted record first-quarter profit that beat estimates. With a few notable exceptions, Wall Street firms praised the company’s robust demand and confident outlook despite supply-chain issues.
Analyst Commentary
Wells Fargo, Colin Langan (equal weight, PT $910)
- “Once again, higher pricing and leverage of labor and overhead costs likely helped offset the underlying material cost inflation”
- Also notes strong delivery growth and a favorable pricing environment
Jefferies, Philippe Houchois (buy, PT $1,250)
- While guidance was unchanged, Houchois is more confident
- Equipment capacity, pace of new manufacturing technologies and supply chains remain the limiting factors in 2022, he writes
Wedbush, Dan Ives (outperform, PT $1,400)
- With supply-chain issues still an overhang on the auto sector and global logistical issues, the “Cinderella-like” delivery numbers speaks to an EV demand trajectory that looks quite robust for Tesla
- In terms of guidance, not surprisingly Tesla stuck to its forecast for 50% average annual growth in deliveries, although clearly supply chain issues have become a limiting factor, Ives writes...
....MUCH MORE
The stock is changing hands at $1,060.28 up $83.08 (+8.50%) after trading as high as $1,090.50.
