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Analysts – and CEO Elon Musk – continued to defend the demand of electric car manufacturers.
Tesla (TSLA), down more than 30% this year, recently decreased 0.4% to $ 213.07,
S & P 500
was flat. This had shares in advance of 4% for the week; last week, they rose 10%. The increase this week was marked by bumps.
Shares fell Wednesday after the annual meeting of the company, although Musk took the opportunity to reassure investors that the second quarter would have better prospects than the first. ("There is no problem of demand," said Musk. "Absolutely not.")
Reuters said Thursday that the Trump administration has rejected the company's request for tariff relief on certain components of its vehicles made in China, which has hurt the stock, even though it ended yesterday.
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Thursday, Berenberg analyst Alexander Haissl– A Tesla bull with a purchase price and a $ 500 price target, well above the $ 285 average of FactSet – has become the latest analyst to offer optimism about vehicle demand.
"Demand concerns are exacerbated, with first-quarter volume weakness being largely self-inflicted by logistical problems, uncertainty surrounding store closures and changes in pricing structure, not an indication. the underlying situation of the demand, "he wrote.
Haissl think that increased competition could help Tesla, as consumers considering electric vehicles will make comparisons and determine that their vehicles offer better technology and value. "The advantage of Tesla over its competitors is too important to be ignored and rejected," he wrote.
Wall Street is looking for 92,000 deliveries in the second quarter, according to FactSet. Musk said "record" figures that would imply something higher than the 90,700 recorded in the fourth quarter of last year. In April, Tesla said expect a number between 90,000 and 100,000.
Read: Tesla could have a loophole to escape its solar obligations
"Although it is possible to deliver more vehicles, we think it is important to start breaking down the" vague "approach to vehicle deliveries, where overseas cars were manufactured in the first half of the quarter and cars from North America were manufactured. in the second half, "said the company in April." This puts extreme pressure on Tesla, negatively affects our working capital requirements and adds to our cost structure. "
As investors are more comfortable with Teslas' demand levels, Haissl writes, the shares are expected to increase because of other catalysts, such as the potential of its Chinese factory under construction and its driving technology autonomous, have a "multiplier effect on the stock".
But do not expect a good quarter to make the application a no-problem. "The demand debate will likely remain a battlefield" on paper "between bulls / bears and will only be solved once tangible facts have been reported," said Haissl, "the direction giving only little credibility to any reassuring comment. "
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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