Despite the negativity around Tesla, Inc. (NASDAQ:TSLA) and its stock, an analyst on Tuesday reaffirmed his bullish stance.
What Happened: “This team-driven, rah-rah bipolarity is as extreme as extreme gets,” said CANACCORD Genuity analyst George Gianarikas in a note, excerpts shared by Tesla influencer Sawyer Merritt on X showed. “Come to think of it, it's actually kind of always been that way with Tesla. Every headline is either world-ending or world-beating according to the cognoscenti,” he added.
Stating that he is taking a balanced view, the analyst said the first-quarter deliveries miss was not only demand-driven but also supply-driven. The company could have sold more vehicles if it had sold all the updated Model 3s people wanted without any supply issues built its full capacity of Cybertrucks during the quarter, and did not experience shutdowns in Europe, he said.
Incidentally, a recent Wall Street Journal report said Tesla has delayed deliveries of its Cybertruck without giving a reason.
Gianarikas also delved into the recent layoff announcement from Tesla. One reason for the drastic step could be due to a further deep contraction in core auto margin in the first quarter, the analyst said. But it could also mean, the company was prudently right-sizing for a period of slow growth, ...