Tesla Motors (TSLA) Production in March 'Significantly' Up from Jan./Feb. - Global Equities

April 6, 2015 6:57 AM EDT
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Price: $663.54 --0%

Rating Summary:
    21 Buy, 21 Hold, 11 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 26 | Down: 11 | New: 6
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Global Equities Research commented on Tesla Motors (Nasdaq: TSLA) following a Q1 delivery update issued by the company late last week. Analyst Trip Chowdhry commented:

-- Production activity in March'2015 was significantly more than January and February. Probably, a reflection of ending of Port Strike and easing of Parts supply issues

-- April' 2015 production activity seems to be a continuation of March' 2015 production activity .....

-- Now lets look at what the Company guided during the 1Q'2015 earnings call:

  • At least 55,000 Car Units delivered, with 40% of Units being delivered in 1H'2015 and 60% of Units being delivered in 2H'2015
  • The above guidance means that in 1H'2015 TSLA will need to deliver 22,000 Car Units
  • In 1Q'2015. TSLA delivered 10,000 Car Units
  • So, in 2Q'2015, TSLA will need to deliver 12,000 Car Units, so as to maintain its Guidance

-- Non-GAAP 1Q'2015 revenues may come at $1.15 Billion, because of 5% more Units delivered; and Higher ASP, because we saw significant number of customers ordering P85D, which sell at $125K

-- Tesla is probably the only manufacturing company with an incredible negative working capital (A/C Receivables are less than A/C Payable every quarter). This is extremely positive for the stock

-- Based on our check, Production activity in April'2015 seems to be at the same level as that in March'2015. This gives us confidence that TSLA can at least deliver 12,000 Car Units in 2Q'2015

GER has Tesla with an Overweight rating and $385 price target. The current price target factors in FY2015 revenue estimates of $6.2 billion, and FY 2015 production estimates of 62K to 65K Auto Units.

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

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