tl;dr
Reactions to Tesla's (NASDAQ:TSLA) earnings report poured in on Wednesday after the electric vehicle maker posted a sharp drop in Q1 revenue, deliveries, margins, and EPS from a year ago, but provided an update on its plans for new mass-market models and a robotaxi platform. During Tesla's earnings ...
Reactions to Tesla's (NASDAQ:TSLA) earnings report poured in on Wednesday after the electric vehicle maker posted a sharp drop in Q1 revenue, deliveries, margins, and EPS from a year ago, but provided an update on its plans for new mass-market models and a robotaxi platform. During Tesla's earnings call, Elon Musk said the company is now an AI robotics company. "If you value us otherwise, the right answer is impossible to the questions being asked. If someone doesn’t believe Tesla will solve autonomy, they should not be an investor in the company," he stated. That left analysts with a lot to digest. HSBC said Tesla (TSLA) displayed weak profit and cash flow in Q1, but kept the dream of a next-gen vehicle alive. "Gen vehicle appears to have morphed into something less radical than previously indicated, but there was confirmation that more models are coming, although they will utilize existing production footprint and a combination of new and existing technologies," highlighted HSBC analyst Michael Tyndall. UBS reiterated a Neutral rating on Tesla (TSLA), but cut its price target to $147 from $160 on the view that near-term visibility is cloudy due to its pivot to AI. "TSLA took the ultimate bear case off the table as there is a new, lower-cost product coming," noted analyst Joseph Spak. "While we see improvement from 1Q24 levels, we see limited growth for current lineup and lack of clarity on what these new vehicles could bring," he added. Spak and his team think there are still several unanswered questions around the new low-cost vehicle. Wedbush Securities lowered its price target on Outperform-rated Tesla (TSLA) to $275. Analyst Dan Ives said Elon Musk and the company made the right decision to go with a new concept that he called the Model 2.5., although he warned of a potentially bumpy road. "The autonomy and FSD aspect of Tesla is a key longer term strategy and while it faces much promise, this also brings a host of regulatory and technology challenges that must be navigated over the coming years step by step to achieve Musk's strategic vision," he noted. Morgan Stanley analyst Adam Jonas said that while Tesla (TSLA) Elon Musk expects deliveries growth in 2024 and beyond from last year, he thinks full year sales growth may require further price cuts, help from the market, and seamless execution on cheaper new model introductions from here. On Seeking Alpha, analyst Steven Fiorillo presented the bull case on Tesla (TSLA) in a post-earnings article. Investing Group Leader Jonathan Weber stayed bearish with his new TSLA appraisal. Analyst Bill Maurer played it down the middle with an upgrade to a Hold rating after having TSLA set at Sell. Shares of Tesla (TSLA) rallied 12.20% in premarket trading to $161.81 after shedding 15% in the two weeks building up to earnings day. The 52-week high for Tesla is $299.29 and shares hit a low of $138.80 on Monday.
More about Tesla Inc
Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.
Industry: MANUFACTURING, MOTOR VEHICLES & PASSENGER CAR BODIES
Market Cap: 460.775B
Price: $33.65
Dividend: None
P/E Ratio: 4.3
EPS: $30.49
ROE: 0.155
Revenue: $96.772B
Gross Margin: 171.36
Net Margin: 1.115
Debt to Equity: 0.035
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