'Flat' Q2 Report Could Drive Tesla (TSLA) Higher; Gigafactory, Int'l Deliveries in Focus - Stifel
Get Alerts TSLA Hot Sheet
Rating Summary:
24 Buy, 26 Hold, 13 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 7 | New: 39
Join SI Premium – FREE
Stifel maintains its Hold rating on Tesla Motors (Nasdaq: TSLA) into the company's Q2 report, which is expected out after markets close Thursday.
Analyst James Albertine sees Tesla posting Q2 EPS of $0.06, which is richer than the consensus at $0.04. The estimate is based on 7,500 deliveries and 25.8 percent automotive gross margin estimate in the quarter.
Key items for Tesla on the quarterly call include its progress on:
(a) its international roll-out (with an emphasis on China deliveries);
(b) an update on the Gigafactory (we hope to learn more regarding Panasonic's partnership, facility location, capacity ramp and potential need for a second factory per TSLA's updated demand outlook); and
(c) details related to TSLA's announced downtime, production/delivery schedule for the Model X utility vehicle.
Albertine commented, As it relates to TSLA shares, our sense is ... that "in line" will be good enough to drive TSLA's stock price higher on EPS results. We also believe TSLA has enough global runway with respect to recently tapped or altogether untapped markets to continue a steady production ramp of Model S and Model X units well into 2015 as the gigafactory breaks ground. That said, we remain Hold rated primarily because we have taken a more conservative view as it relates to the scalability of automotive material, shipping and labor costs (capacity constraints, fluctuations in reservation schedules, potential transportation disruptions associated with the global build out), R&D costs to support ongoing product refreshes, and the underlying base assumption for battery costs on a $/kWh basis, reflecting some of the broader industry skepticism related to TSLA's $200-250/kWh claims.
For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.
Tesla Motors closed at $228.92 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Midday movers: Google, Pepsi rise; Boeing, Zillow fall
- Select Energy Services (WTTR) PT Raised to $9 at Citi, 'We roll our valuation to 2025E'
- Berenberg Starts Prysmian SpA (PRY:IM) (PRYMY) at Buy, 'Shovels for the gold rush'
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
TeslaSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!