Tesla's (TSLA) Q2 vehicle deliveries may trail market consensus by 5.5%, partly because of a "tough quarter" in Europe, UBS Securities said Monday in a report.
The investment firm lowered its forecast for Q2 to 420,000 units from 471,000 units. The latest projection lags behind the Visible Alpha consensus of 445,000 units and pegs deliveries down 10% from a year earlier and up 9% from Q1.
Tesla's 0.99% financing option on the Model Y likely helped boost US sales in Q2, while industry data in China pointed to a 2% increase in the company's domestic retail deliveries in April-May from the previous quarter and a 5% jump from a year earlier, UBS said.
After the release of Q2 delivery figures, UBS said the focus shifts to earnings and then to the company's AI robotaxi on Aug. 8.
Tesla "may be entering another phase where the stock price disconnects from the current fundamentals of the business on hopes of future growth and AI enthusiasm," the report said.
UBS has a neutral rating on the stock with a $147 price target.
Tesla shares rose 1% in recent trading Monday.
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