Elon Musk’s Tesla, Inc. (NASDAQ:TSLA) is drowning, but the analysts team at Jefferies is oddly still positive on the shares.
We all know that Tesla manufactures and sells EVs that include 2 high-end Models the S & X, and a mass-market-oriented M3, cars that no 1 seem to want now.
Hang On, it also makes and sells solar panel systems, you remember Solar City, that no 1 seems to want either, as they are priced way above the Chinese competition.
And there is more: Tesla has generated revenue from selling Zero-emission vehicle credits to OEMs and it manufactures and sells energy storage systems.
The stock is more than volatile in here it is on life support and CEO Elon Musk is, well he is Elon Musk, a very unique and unpredictable C-Suite hands on manager who seems to always be on the brink of a personal crisis or in the cross hairs of the regulators and courts.
Nevertheless, the Jefferies analysts remain positive and noted this after last weeks weak Quarterly earnings report: The Company reported 1st results last week that were mixed. We noted that the revenue shortfall in the quarter was more than accounted for by vehicles sold with residual value commitments. We expect that this should not recur, unless Tesla fails to stabilize its pricing policy. That said, auto gross margin of 20.2% came in better than feared. In addition, the company maintained fiscal year delivery guidance of 360-400,000 units and reiterated strong demand. We also point out that on the call, management sounded more open to raising capital to address current inefficiencies in logistics. We remain confident there is a path to sustained profitability.
The Jefferies price target is in the Ozone at 400. The analysts’ consensus estimate was last seen at 296.16, and the stock finished Wednesday at 234.01 at 2 year lows.
Tesla is a very risky play that Shayne and I believe is for professional only now. Our price target is 140 and then…
HeffX-LTN’s overall technical outlook for Tesla is Very Bearish across the board, there is no support for the fledgling EV maker in here an a mountain of overhead resistance.