Wedbush Said Q1 Estimates for Tesla (TSLA) 'Very Beatable'

April 22, 2021 9:06 AM EDT
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Wedbush analyst Daniel Ives said he is expecting good news from Tesla (NASDAQ: TSLA) next Monday night, April 26, when the company reports earnings, with upside likely across the board.

Ives said the consensus of revenues of $10.4 billion and pro forma EPS of $0.75 "appear very beatable given the strong 1Q delivery numbers and tight expense controls seen in Fremont."

"While Tesla has navigated a myriad of Chinese government PR issues, chip shortages, and a further spotlight on its auto pilot safety record (given the Texas crash) over the past month, the Street is now laser focused on gauging the annual delivery trajectory for 2021 heading into next week's main event which we expect to drive the stock much higher over the coming months. Despite the noise and worries about increasing competition (GM, Nio, etc), Tesla continues to see growing pent-up demand throughout China and Europe, with the US on the verge of seeing a further inflection in demand in our opinion once the EV tax credit ceiling is lifted and likely raised to $10k (from currently $7,500) over the coming months under the Biden driven green tidal wave."

Ives added that the robust 1Q delivery numbers show that the pent-up demand globally for Tesla's Model 3/Y is hitting its next stage of growth as part of a global green tidal wave underway.

"We now believe Tesla could exceed 850k deliveries for the year with 900k a stretch goal, despite the chip shortage black cloud and various supply chain issues lingering across the auto sector," the analyst added. "While the EV sector and Tesla shares have been under pressure so far this year, we believe the tide is turning on the Street and the "eye popping" delivery numbers coming out of China cannot be ignored with the trajectory on pace to represent ~40% of deliveries for Musk & Co. by 2022."

The analyst believes China and Europe were particularly robust this quarter and sees US strength around the corner amid the green tidal wave kicked off by Biden.

reiterated an Outperform rating and $1,000.00 price target on

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 $745.00 yesterday.



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