Tesla beats delivery goal, but this bear does not prevail

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JP Morgan analyst Ryan Brinkman said Tesla's delivery report was better than expected on Tuesday, but he still saw some reason to be wary of the company's actions.

Certainly, the last report of Tesla had strengths, wrote Brinkman in a note sent Wednesday to his customers.
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(TSLA) delivered 83,500 cars, the first time the company has exceeded expectations on this metric basis since the start of model production. 3 The company also found that production was slightly less efficient than deliveries, which, according to Brinkman, is expected to contribute to Tesla's working capital cash position for the third quarter.

But the Tesla report was "not entirely positive," he said. Tesla told investors, in its updated deliveries, that it had manufactured "more than 5,300" model 3 vehicles here the last week of the quarter, but the company had said in its letter in the second quarter to shareholders it was aimed at 6,000 models 3 a week. the end of August.

The Tesla stock closed down 3.1% on Tuesday, and it was up about 0.9% in pre-market trading on Wednesday. The stock has fallen 3.3% since the beginning of the year, while the S & P 500 index has risen 9.3%. The title was recently split into the CEO's proposed plan, which was later put on the back burner, to privatize the company, and the SEC's subsequent investigation resulted in an agreement to remove him from office. Chairman of the Board of Tesla.

Brinkman also pointed to Tesla's comment on tensions related to the trade war, given that the company is now subject to a 40% import duty rate on its cars, compared to 15% for cars from other countries. It's "another negative development," he said, coming "just as China's domestic consumption of battery-powered electric vehicles begins to heat up."

Beyond the latest delivery report, Brinkman remains concerned that Tesla's stock is "overvalued at the fundamentals level." While he's slightly adjusted his third-quarter estimates, Brinkman is now expecting a loss per share of $ 1.35 against the previous estimate of $ 1.66. kept its under-weight index and $ 195 price target intact.

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