Downgrades on Tesla shares continue
2022.12.15 07:40
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Downgrades on Tesla shares continue
Budrigannews.com – Tesla (NASDAQ:) received an Outperform rating from RBC Capital once more. and decreased the price target from $325.00 to $225.00 as concerned investors continue to exert pressure on the stock. Bears are concerned about the TSLA brand’s impact on demand, pricing, automakers, and Elon Musk’s Twitter distraction.
“Investors are concerned about demand, pricing, auto-GMs, and Twitter distraction/overhang/impact on TSLA brand,” RBC analysts wrote in a note. These are legitimate concerns, and the stock may suffer in the near future if expectations need to be adjusted. In any case, we consider the account of TSLA to be the best-situated EV producer and significant FCF age reappearing in 2023.”
As gross margin expectations re-calibrate, the analysts anticipate that the stock will continue to be under pressure. However, once this occurs, they see a compelling case for TSLA to continue driving earnings/FCF higher as the low-cost leader and leveraging opex.
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They further added, “Auto gross edges ex-credits has been THE go-to metric for TSLA. We believe this will need to change.
Within two to three days of the end of the quarter, Tesla will announce quarterly deliveries. RBC Capital anticipates total 4Q22 deliveries of 408.5K units, compared to the current Visible Alpha consensus of 432.5K units. RBC’s 2023/24/25 total revenue estimates increase from $109B/$127B/$149B to $103B/$120B/$140B, and its EPS estimates increase from $5.45/$6.15/$7.05 to $4.70/$5.25/$6.25 from $5.45/$6.15/$7.
Thursday morning in pre-market trading, TSLA shares are down 1.29 percent.
