2016 is so far terrible for Elon Musk. Tesla is down nearly 40%, trading at $148,25. Not only that. His SolarCity is down about 30% from start today. GM look even better at the moment, which is down only 16% YTD.
Barclays maintained an Underweight rating on Tesla and its new price target is $165. Analyst at Barclays Brian Johnson said; «Although we expect an inline 16 guide, so we think the slow ramp may challenge deliveries, cash burn, and margins, while also reminding us of risks in the years ahead to Tesla`s aggressive growth ambitions.»
Estimize calls for EPS of $0,04, which is 4 cents higher than Wall Street while revenue estimates of $1,8B (up 69% from last year) are right in line with the Street. Estimize is bearish on Tesla`s profitability, moving EPS estimates down 58% this quarter, but still expecting impressive YoY growth of 130%!
Tesla delivered a record 50,580 vehicles but failed to meet volume expectations Tesla set earlier in the year. Investors sent the stock down over concerns that Tesla won`t be able to execute on its ambitions growth plans.
Given operation expenses account for almost 50% of the company`s revenue, missing volume forecasts put a severe damper on margins. Tesla have spent a lot of money in launching its first SUV and building out a sustainable battery.
If the Model X SUV sales are missing like the sales of the Model S sedan, it could have a huge effect on the stock price this year. It is a bearish sentiment on Tesla`s ability to turn a profit in Q4, and analysts have recently downgraded Tesla from a hold to sell rating.
10 out of 15 brokerage firms now say Tesla is a «hold» or worse, but Barclays’ Johnson also said the shares could see a short-term rebound after the March unveiling of the Model 3, especially with an unwinding of current bearish sentiment.
Tesla will report after the bell on Wednesday.
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