Tesla's Freemont Factory Running 10-20% Above Capacity, "2Q is Shaping To Be a Monstrous Quarter" - Global Equities' Chowdhry Remains Bullish in the Face of Selloff

May 2, 2022 10:13 AM EDT
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Price: $268.21 -6.81%

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Global Equities Research analyst Trip Chowdhry is yet again voicing strong support for the shares of Tesla (NASDAQ: TSLA), even as the stock is battered by massive insider sales from CEO Elon Musk.

As part of his routine monthly checks on the EV maker's Freemont Factory, the analyst has noted that "May'2022 is off to an extremely strong Production, Shipments and Deliveries."

He highlights the factory photographs, which appear to show "a lot more Shipping Trucks in 2Q'2022 vs. 1Q'2022 "and estimates that "TSLA has increased the number of Shipping Trucks by at least 20%."

The analyst thus believes "Fremont Factory is running 10% to 20% above capacity" and comments that "2Q is shaping to be a Monstrous Quarter".

In its most recent quarter (1Q), the company delivered a strong beat with EPS of $3.22, significantly above the consensus estimate of $2.26. Revenue grew 81% year-over-year to $18.8 billion, beating the consensus estimate of $17.8 billion. Tesla produced a total of 305,407 vehicles while it delivered 310,048.

The analyst's comments also come on the heels of a recent Tesla stock turmoil. Shares of the world's biggest EV producer took a nearly 15% hit last week, as Tesla's CEO Elon Musk sold $8.5B worth of the company's stock to finance his acquisition of Twitter before tweeting that no further sales are planned. Musk is also using Tesla shares as collateral for a loan to finance part of the transaction.

Trip Chowdhry reiterates a "Buy" rating on TSLA shares with $2300 Price Target, implying just shy of 200% upside from current levels of ~$870.

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