Latest News

: Tesla stock lower ahead of second-quarter sales

0

Tesla Inc. is set to unveil later this week second-quarter deliveries, the electric-car maker’s proxy for sales, which were likely hit by pandemic-related lockdowns in China and down from recent quarters.

Tesla
TSLA,
-3.39%

reports production and deliveries numbers by quarter, rather than by month like other auto makers such as Ford Co.
F,
+0.08%

It does not set a firm date but usually releases the closely followed previous-quarter data in the first couple of days in the new quarter.

Dan Levy at Credit Suisse said in a recent note he expects second-quarter deliveries of around 242,000 vehicles, “constrained by China COVID lockdowns.”

Credit Suisse is below FactSet analyst consensus calling for around 270,000 vehicles delivered in the quarter. Tesla delivered 310,000 vehicles in the first quarter and 309,000 in the fourth quarter.

April and May sales combined deliveries were likely around 100,000, Levy said, with June deliveries benefiting from the recovery of production at Tesla’s factory in Shanghai and improvements at other Tesla plants.

China’s “COVID zero” policies have resulted in factory shutdowns across the nation.

“Despite challenges, (Credit Suisse’s) case for Tesla is amplified,” Levy said. There are “robust fundamentals ahead” outweighing near-term challenges such as the disruption in China, the ongoing chip shortage, and others.

“Tesla remains the global leader in EV, and amid rising supply chain risks, we believe Tesla’s lead over other auto makers in the race to EV is only amplified given its lead in vertical integration and its prior EV experience,” the analyst said.

Shares of Tesla have fallen about 35% this year, compared with losses of around 16% for the S&P 500 index
SPX,
-0.98%
.

Earnings Results: Nike stock dives as Wall Street jeers margin outlook rather than cheering profit and revenue beats

Previous article

Key Words: Elmo gets the COVID vaccine, and says ‘there was a little pinch, but it was OK’

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News