: Tesla analysts trim their estimates after deliveries fall

by | Jul 5, 2022 | Stock Market

Wall Street was busy Tuesday rewriting some of its estimates for Tesla Inc. after the electric-car maker reported fewer quarterly deliveries, its proxy for sales, over the long weekend. Tesla
said Saturday it sold nearly 255,000 vehicles in the second quarter, a decline of about 18% from the first quarter and also below fourth-quarter numbers.

Analysts polled by FactSet most recently estimated deliveries of around 264,000 vehicles for the quarter. Tesla shares edged higher on Tuesday, bucking a downdraft for the broader equity market. The stock is down about 35% for the year so far, compared with losses of around 21% for the S&P 500 index.
Wall Street had braced for a difficult quarter in sales and production for the EV maker, as Tesla’s Shanghai factory was impacted by factory shutdowns across China under “COVID zero” policies. Tesla is set to report second-quarter earnings after the bell on July 20. FactSet consensus calls for adjusted EPS of $1.91 on sales of $17 billion. That would compare with second-quarter 2021 EPS of $1.45 on sales of $12 billion. Ryan Brinkman at JPMorgan lowered second-quarter and full-year earnings per-share estimates as well as his price target on Tesla stock, focusing on deliveries that were “materially less” than the previous quarter and estimates earlier in the year. “Lower production in Shanghai due to factors outside Tesla’s control is likely the largest contributor to the production shortfall pressuring deliveries during the quarter, although there may be reason to believe that production — and financial results — could be being impacted also by company-specific execution issues at the company’s new factories in Austin and Berlin,” Brinkman said. Brinkman kept the equivalent of sell on Tesla stock, and trimmed his price target on the stock to $385, from $395. The analyst lowered full-year EPS to $10.80 from $11.50, and his second-quarter EPS expectations to $1.70 from $2.26. Garrett Nelson at CF …

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