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needs China. And his plans to expand his business in this country are going well.
The Tesla stock (symbol: TSLA), down more than 40% in 2019, is down 1.3% to 185.67 dollars Friday afternoon, in line with the decline in
Nasdaq Composite Index.
The electric car maker, according to Dow Jones and other reports, has begun to share the prices of cars manufactured in its Chinese factory under construction, thus indicating to buyers a delivery later this year or early in the year. ;next year.
The company is building the plant to circumvent import tariffs and production costs – as well as the hassle – created by sending US-made cars abroad, which would limit the financial benefits of which is considered an interesting market for electric vehicles.
Read: Tesla Bulls and Bears Fight
The construction of cars on site allows Tesla to charge much less – more than $ 10,000, according to Dow Jones, for the Standard Plus sedan model 3 – than for cars built in the country. (The company also said on Twitter Models 3 can now be ordered in Australia, Hong Kong, Japan, New Zealand, Ireland and Macao.)
But this is also happening at a time when the strength of the Chinese economy is at the center of investors' concerns. Earlier this week, the Chinese automaker
Nio
(NIO) offered a disappointing outlook for the second quarter, calling its sales outlook "difficult and uncertain". His shares have recently fallen by 5.9% to $ 3.05.
JMP Securities analyst Joseph Osha reiterated Friday a Market Outperform rating on Tesla and a price target of $ 369, above FactSet's average of $ 286 USD.
Bearish analysts have been particularly noisy lately, but bulls have more to say, and Osha has been optimistic about second-quarter circulation figures based on April data for US recordings, among other sources.
"First data suggests that our target of 90,500 units for the second quarter [deliveries] is secure, but it seems that the volume can lean a little more towards the model 3 than expected, "he wrote.
Read: Tesla Stock gets a lift while Elon Musk's e-mail raises hope thanks to deliveries
The Wall Street consensus is estimated at 92,000. CEO Elon Musk In emails to Tesla staff, the company could exceed 90,700 deliveries in the fourth quarter, assuming sufficient production.
Perhaps softening the pot for some buyers, the company now says that S and X model vehicles in inventory – those already configured, not custom orders – will come with unlimited boosting until end of June.
Meanwhile, Maxim Group Friday has changed its price target on the digital music company
LiveXLive
(LIVX), which sells streaming music subscriptions used in Teslas, is down slightly, citing cautious assumptions about vehicle sales.
Send an email to David Marino-Nachison at [email protected]. Follow him to @marinonachison and follow Barron's Next to @barronsnext.
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