""""Substantially Worse than Expected": Tesla Plunges As Analysts Throw Up On Disastrous Deliveries'''
Tesla thought it was getting one over on the world last night when it waited until the close of extended hours trading before releasing its awful Q1 delivery numbers. But last night's timing didn't the stop reality from taking hold this morning, when Tesla stock crashed $26, down a little over 9% with further downside expected as exasperated mutual funds start dumping at the open.
Feeding the dismal mood, even formerly bullish analysts have come out swinging at Tesla this morning, throwing up all over its disastrous delivery numbers with RBC's Joseph Spak saying that the delivery miss could wind up turning into a $1 billion revenue miss. Spak was previously looking for 52,500 Model 3 deliveries, down from his previous estimate of 57,000. He said in a note Thursday morning:
“To us, this signals that the tax subsidy cut in the US was a significant hit to these premium vehicles and/or Model 3 is having a bigger cannibalization impact,” he says. Tesla’s comment about challenges of delivering to Europe, China “speaks to a lack of planning and foresight,” Spak said.
Spak also expects a "sizeable cash burn" in Q1. JPMorgan analyst Ryan Brinkman also blasted the company in a morning note: "Tesla's 1Q19 vehicle production & deliveries report was substantially worse than expected." JPM lowered their price target to $200 from $215
Because of the lower than expected delivery volumes and several pricing adjustments, we expect Q1 net income to be negatively impacted.
The Q1 Model 3 number missed consensus estimates of 55,100 by nearly 10% and also fell well short of the 63,000 Model 3s that the company produced last quarter. The number also fell short of analysts’ estimates of 58,900, according to IBES data from Refinitiv. Deliveries of all models fell 31 percent from the fourth quarter to 63,000 vehicles, including 12,100 Model S sedans and Model X SUVs.
https://www.zerohedge.com/news/2019-04-04/substantially-worse-expected-tesla-plunges-analysts-throw-disastrous-deliveries
TSLA
261.95 -29.86 (-10.23%)
Pre-Market: 8:30AM EDT
https://finance.yahoo.com/quote/TSLA?p=TSLA&.tsrc=fin-srch