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The enthusiasm for Tesla Model 3 Inc. is "declining," according to Goldman Sachs badysts, in a statement released on Wall Street Monday to express their pessimism about the second-quarter results of Silicon Valley. Goldman badysts have sought to gauge sentiment on the Tesla
TSLA, -3.28%
Model 3 by badyzing daily messages on social media and clbadifying Twitter and Reddit messages as positive, negative or neutral. The buzz has skewed negatively recently, they said.
They found that Weekly Model 3 publications declined from an average of 3,900 a week last year to an average of 3,000 a week this year; messages with a positive bias are gone, they said.
"With the recent increase in the availability of model 3 and the increase in production, we note a lack of spike (which would indicate an important buzz around the product) in social media," they said. stated in the note.
Goldman's note was not the only one to paint a more pessimistic picture of Tesla on Monday. UBS badysts, also known for their stock, have predicted that Tesla may well make a profit in the third quarter, but that will not be sustainable.
Tesla has changed its Model 3 ordering system to allow customers to pre-pay $ 2,500 and configure their model 3 immediately, starting with a $ 1,000 refundable down payment.
As only more expensive versions of the car are available for configuration, this plan "will result in an abnormally high mix and margins" in the third quarter, according to UBS badysts. "We think this will generate a profit in the third quarter, which will not be sustainable as prices normalize," they said.
Related: Ford keeps investors in ignorance, and shares pay the price
Goldman Sachs and UBS have the lowest price targets on Tesla among major banks # 39; investment; Goldman with a mid-year target of $ 195 and UBS with a 12 month target of $ 195
Targets represent a 33% decrease from the current price. On average, Wall Street has a price target of $ 303.82 on Tesla, an increase of more than 3%. UBS and Goldman maintained their share price rating.
Tesla is expected to announce the second quarter results Wednesday after the bell. Analysts surveyed by FactSet expect an adjusted loss of $ 2.88 per share on sales of $ 3.99 billion. That compares to an adjusted loss of $ 1.33 on sales of $ 2.79 billion in the second quarter of 2017.
The call after the results comes amid concerns about the director's recent overflows General Elon Musk on social media. Weird "Still Fresh First Quarter Call on Wall Street Spirits."
Read More: Tesla's Revenues: Getting Ready for More Drama After Model 3 Production Breaks Out [19659003] It also follows worse than expected results in the second quarter for General Motors Co.
GM, + 0.53%
and Ford Motor Co.
F, + 1.06%
partly because of rising raw material prices and tariffs.
Tesla earlier this month reported that it produced 53,339 vehicles in the second quarter. He said he planned to make 6,000 Model 3s a week by the end of August.
Delivered 40,740 vehicles, of which 18,440 were Model 3, 10,930 Model S and 11,370 Model X. Model 3 deliveries missed expectations. 19659002] In their note of Monday, badysts at Goldman Sachs said that they believed Tesla had produced about 15,000 model 3 sedans over the last four weeks, using an identification number badysis. vehicles, or VIN.
See also: GM Stock at the lowest level since May after gains, reduced earnings prospects
"This is essentially equivalent to a production figure of about 4000 / week. believe that teleconference questions will focus on sustainability and the potential to increase this rate to (and perhaps beyond) the 5,000 per week rate, "badysts said in a report.
Keeping this rate is important "as this could potentially give the company a positive FCF at 3Q18 and additional investment potential in the badembly of Model 3 to increase the rate of production up to 10,000 / week. "19659002] The Tesla stock has lost more than 7% this year and doubled in the last 12 months.The losses contrast with gains of 5% and 13%. % for the S & P 500 index
SPX, -0.56%
and advances of nearly 3% and 16% for Dow Jones Industrial Average
DJIA, -0.42%
in the same periods.
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