From Barron's, April 2:
Tesla's stock was down in premarket trading early Wednesday, just ahead of the company’s release of first-quarter delivery data.
Shares of the electric vehicle maker run by CEO Elon Musk were down 2.5% at $261.78, while S&P 500 and Dow Jones Industrial Average futures were down 0.4% and 0.5%, respectively.
On weekdays, Tesla typically releases results before the start of regular trading at 9:30 a.m. Eastern time. Investors can look for the news between 8 a.m. and 9 a.m.
When news arrives, investors will want a delivery number north of 360,000 vehicles. The company-compiled consensus is closer to 380,000 cars, but investors are already braced for the worst.
Coming into Wednesday trading, Tesla stock was down 34% so far this year and off 45% from a record high of just under $489 a share reached in mid-December.
Delivery expectations contributed to the declines. Since mid-December, Wall Street’s estimates for first-quarter deliveries have fallen from an average of about 470,000 vehicles to 380,000. Two issues explain why estimates have fallen.
For a start, investors fear Musk’s political activities are turning off some core Tesla buyers—politically left-leaning people looking to go green.
Tesla also updated its most popular vehicle. The Model Y. Model updates can create a sales air pocket with buyers waiting for the new versions with updated features and styling.
Any number above 360,000 should be enough to keep shares stable. A number below 350,000 could have investors facing more pain....
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