TECH - Tesla Sized Up By 9 Analysts After Q3 Earnings: 'Mini Disaster' Conference Call First Bad Miss In Some Time A Win For The Bears | Benzinga
Electric vehicle leader Tesla Inc (NASDAQ: TSLA) reported third quarter financial results after market close Wednesday.
The company reported revenue and earnings per share that both missed estimates from analysts for the quarter.
Here’s a look at what analysts are saying after the recent earnings report.
The Tesla Analysts: Evercore analyst Chris McNally had an In-Line rating and a price target of $180.
Roth MKM analyst Craig Irwin had a Neutral rating and a price target of $85.
Morgan Stanley analyst Adam Jonas had an Outperform rating and lowered the price target from $400 to $380.
Guggenheim analyst Ronald Jewsikow had a Sell rating and a price target of $125.
Oppenheimer analyst Colin Rusch had a Perform rating and no price target.
Needham analyst Chris Pierce had a Hold rating and no price target.
Wedbush analyst Daniel Ives had an Outperform rating and lowered the price target from $350 to $310.
GLJ Research analyst Gordon Johnson had a Sell rating and a price target of $24.33.
Bank of America analyst John Murphy had a Neutral rating and a price target of $290.
Evercore on Tesla: The electric vehicle company reported its first bad miss in some time according to McNally.
"Tesla headline miss was BAD,” McNally said.
The analyst said the conference call was also problematic for the company and gross margins came in significantly lower than expected.
"We currently are most concerned about ’24-26 EPS which likely is 15%+ too high on the combo of lower units and additional price cuts resulting in further GM (gross margin) pressure.”
Roth on Tesla: The trajectory for Tesla weakened and the company should not be viewed as a software company, Irwin said.
"The crucial debate will be how much does Tesla need to cut prices to keep deliveries moving at an attractive rate in 2024,” Irwin said. "We see the 2.25 million 2024 deliveries consensus as unachievable in nearly every scenario.”
The analyst said expectations for the company might be too high and the threat of competition is not priced in.
"We believe the Neutral rating appropriately balances how Tesla is positioned to continue executing, but the shares are valued at an oversized premium to all peers in the automotive sector, in our views.”
Morgan Stanley on Tesla: Investor expectations for the Cybertruck were tempered during the conference call, Jonas noted.
"How can we be Overweight Tesla despite the company’s caution on macro, consumer, Cybertruck and Mexico? Can a ‘growth stock’ work if earnings don’t’ grow in 2024,” Jonas asks.
The ...