tiger cub
2022-06-29

$Tesla Motors(TSLA)$

Why Tesla Stock Hit the Brakes Today

Shares of Tesla (TSLA -5.00%) were falling Tuesday after Deutsche Bank analyst Emmanuel Rosner cut his price target for the stock. Rosner thinks Tesla's second-quarter vehicle delivery numbers -- which will be reported at the beginning of July -- will be lower than previously expected. 

Investors apparently didn't like what Rosner had to say, and drove the EV stock down by 4.6% as of 2:18 p.m. ET. 

Rosner lowered his price target for Tesla's shares to $1,125, down from $1,250, but maintained his buy rating on them. More importantly, he also cut his vehicle delivery estimate for the second quarter to 245,000 -- down from his previous estimate of 310,000 vehicles. 

Tesla investors are getting a little concerned that Rosner and a handful of other analysts have recently reduced their estimates for Tesla's second-quarter deliveries. The consensus estimate is now 273,000 vehicles, which would be significantly below the 310,000 vehicle deliveries Tesla made in the first quarter. 

The revised estimates reflect analysts taking into account the factory shutdowns in China during the quarter, which were necessitated by the country's strict "zero COVID" policy.

Considering that Tesla will likely report second-quarter vehicle delivery numbers at the beginning of July, investors won't have to wait much longer to find out just how much the company was affected by the temporary closure of its Shanghai factory. And while some analysts are resetting their expectations, even the best estimates are still little more than educated guesses. 

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Comments

  • BenGI
    2022-06-29
    BenGI
    price targets always change with these analysts..but as long as we undestand Tesla LT growth we are fine.
  • Clarence1700
    2022-06-29
    Clarence1700
    Wait 4 the moment Buy EV stocks when it is cheaper as in the price is decreasing.
  • ElvisMarner
    2022-06-30
    ElvisMarner
    Look at model3 sales to see how much potential TSLA has.
  • HilaryWilde
    2022-06-30
    HilaryWilde
    Hopefully there will be analysts to support TSLA in the future.
  • EvanHolt
    2022-06-30
    EvanHolt
    Supply chain problems are having a big impact on these companies.
  • PandoraHaggai
    2022-06-30
    PandoraHaggai
    What a good post, I learned a lot.
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