This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tesla Earnings Preview: What Wall Street's Thinking

Litchfield Hills Research analyst Theodore O'Neill (Buy, $222 PT)

Feb. 18 note

"As long as there is a large group of investors, who compare TSLA to a traditional automaker the stock will remain undervalued in our opinion. We feel that investors underestimate the appeal of the Model S and the sales and service experience."

Morgan Stanley analyst Adam Jonas (Overweight, $153 PT)

Jan. 22 note

"The company disclosed it has surpassed its own revenue expectations for 4Q by 20% on 6,900 units delivered of Model S. All eyes will be on the gross margin (25% target) and the order book into 2014.

Investors should pay close attention to any commentary on initial deliveries to Europe and the startup of Asian deliveries. Given the 4Q run-rate, it appears as if our 2014 full year Model S volume estimate of 33k units is looking conservative."

Bank of America Merrill Lynch analyst John Lovallo (Underperform, $65 PT)

"We recently estimated that Tesla would need to sell approximately 330K vehicles per year by 2020, or 15X expected 2013 volume, to begin to justify a $161/share price (see Giving credit where credit is due, but remaining realistic). We note that Tesla's current market price is now 10% higher, which we believe translates into the need for even greater volume to reasonably support the stock valuation. Furthermore, our forecasts incorporate luxury vehicle EBIT margins of about 11.5% by 2020, which appears a stretch given that the majority of the company's sales will likely be attributable to the more mass market oriented Gen 3 model by that time. Furthermore, today's announced China pricing strategy could add further pressure to margins and returns, versus the market's optimistic assumptions. In short, we believe significant fundamental headwinds confront Tesla's current stock price and that another sharp correction could be forthcoming. As a result, we reiterate our Underperform rating and $65 price objective."

Jefferies analyst Elaine Kwei (Buy, $190 PT)

Jan. 15 note

Must Read: Viber Deal Shines Light on Hot Messaging Space

"Yesterday's 4Q delivery announcement was unexpected and surprised to the upside. For the last several quarters, TSLA has beaten their delivery guidance by a few hundred units, and based on VIN checks at stores in California last month, we were modeled at 6,000 Model S deliveries in 4Q. The 6,900 result reflects strong demand in the US and Europe. Total shipments for 2013 were roughly 22,450 compared to prior guidance of 21,500. Although the company declined to break out international sales, we estimate roughly 2,000-2,500 were delivered outside of the US. No information was provided with regard to margins or other 4Q operating results."


--Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TSLA $231.61 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
YHOO $32.94 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs