CFRA promotes Tesla (TSLA) to Strong Buy ahead of 1Q delivery numbers

March 31, 2023 3:20 PM EDT
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CFRA upgraded Tesla (NASDAQ: TSLA) to a Strong Buy rating (From: BUY) and raised the price target on the stock to $275.00 (From $250.00) ahead of the electric vehicle giant’s 1Q delivery report. Tesla will be reporting its 1Q delivery units number likely this weekend.

Analyst Garrett Nelson wrote in a note, “we believe a few data points indicate that a beat relative to the consensus of 432K units is more likely than a miss. First was Musk's January 25 conference call comment that the company was seeing vehicle orders coming in at almost twice the rate of production following its price cut announcement earlier that month. With TSLA's quarterly production having exceeded deliveries in each of the last three quarters, we believe TSLA began the year with significant inventory, which could drive stronger-than-expected Q1 deliveries (its Q4 sales totaled 405,278 units). Additionally, we think TSLA's production likely benefited from easing chip shortages and supply chain issues and the ongoing ramp-up of the Austin and Berlin factories.”

CFRA raise their 2023 adjusted EPS estimate by $0.10 to $4.40, while leaving 2024 and 2025 estimates unchanged.

Shares of are up 6.06% near end of trading on Friday.

By Michael Elkins | [email protected]

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