Tesla: Color on delivery miss
- Canaccord cuts tgt to $391 from $450. Tesla reported lower-than-expected deliveries last night despite improved overall production that appears to have past the previous growing pains. Specifically, for Q1 the company delivered 50,900 Model 3's and 12,100 Model S's and X's in comparison to consensus of 54,590 Model 3's and 20,300 Model S's and X's, respectively. Overall production for the quarter was 77,100 vehicles, an excess of 14,100 or 22% above actual vehicles delivered. While Tesla noted that over 10,000 vehicles were in transit at quarter's end, and half of all vehicles delivered in the quarter occurred during the last 10 days, concerns regarding potentially flagging consumer demand will surely be front and center with investors. While they were disappointed in the shortfall of deliveries in Q1 versus expectations, they continue to believe that the new lower-priced Model 3 variant will spur additional demand. Importantly, the company cited roughly two weeks of inventory in North America which may help temper concerns of an inventory build. They maintain Buy rating given the overall opportunity that they see for Tesla and EVs in general.
- JPMorgan cuts tgt to $200 from $215
- Oppenheimer believes shares will ultimately trade on GM and operating leverage. They anticipate bulls will look through 1Q19 weak deliveries; Outperform.
- RBC sees potential for $1B+ rev miss; Underperform