Tesla (TSLA) Hurt More By Media Hype and Mix Than Top Line Deliveries - Citi

October 3, 2019 6:48 AM EDT
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Price: $589.72 +3.15%

Rating Summary:
    21 Buy, 21 Hold, 11 Sell

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Citi analyst Itay Michaeli reiterated a Sell rating and $191.00 price target on Tesla (NASDAQ: TSLA) after the company reported Q3 deliveries of ~97k, in-line with the analyst's 96k estimate but short of recently inflated expectations stemming from a media reported internal e-mail (first reported by Electrek) suggesting the company had a shot at delivering ~100k vehicles.

The analyst stated "On a QoQ basis, deliveries were up ~2% vs. the company’s original Q3 guidance for QoQ growth. The underlying mix within the delivery numbers looks soft at first glance. Model S/X deliveries were 17.4k vs. our 18.0k estimate, declining 37% YoY and 1% QoQ. Model 3 deliveries were 79.6k vs. our 78.0k. Leasing mix rose QoQ for both the S/X and the Model 3 (non-lease accounting deliveries fell ~1% QoQ). Q3 production was stronger vs. Q2 at 96.2k vs. 87.0k. As for the outlook, the release noted record Q3 net orders resulting in an increased order backlog entering Q4. However, the release didn’t specifically confirm Tesla’s 2019 delivery guidance of 360-400k, for which the low-end now requires ~105k delivery units in Q4. With the shares having held-up well into the Q3 delivery report, we’d expect a pullback on these results".

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

Shares of Tesla closed at $232.00 yesterday.

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