Oppenheimer Updates Model on Tesla (TSLA) Ahead of Anticipated Reporting Changes

October 25, 2016 9:27 AM EDT
Get Alerts TSLA Hot Sheet
Price: $244.73 +0.40%

Rating Summary:
    17 Buy, 13 Hold, 9 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
Trade TSLA Now!
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

Oppenheimer analyst Colin Rusch updated his model on Tesla Motors (NASDAQ: TSLA) on anticipated reporting changes ahead of Q3 earnings on 10/26/16. The firm maintained a Perform rating.

Rusch commented, "Given the potential confusion around TSLA’s anticipated reporting changes, we are publishing an updated model to help investors navigate these adjustments. The critical change in proforma revenue is the recognition of lease revenue not total vehicle value. Due to high percentage of deferred revenue (~35%), this change also materially changes EPS. We expect cash flow estimates to remain intact. We also believe the new reporting structure highlights the importance of TSLA’s lease partners and risks around TSLA’s used vehicle market whether it is older vehicles cannibalizing new sales or the brisk pace of innovation limiting interest in older vehicles. While used Tesla’s have held value well to date, we view the end of lease vehicle strategy as a critical variable for future cash needs."

For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.

Shares of Tesla Motors closed at $202.76 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS View

Related Entities

Tesla, Earnings

Add Your Comment