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Analysts weigh in on Model 3 margins

Published 05/09/2017, 08:24 AM
© Reuters.  Analysts weigh in on Model 3 margins
TSLA
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  • Bernstein analyst Toni Sacconaghi warns that Tesla (NASDAQ:TSLA) may have difficulty hitting 25% gross margins on the Model 3 in the near to medium term due to the high battery costs and an elevated selling mix of the lower-priced versions of the sedan.
  • He also notes that Tesla benefits at the moment from lease accounting, which could reverse in the long term.
  • Bernstein rates Tesla at Market Perform and is in with a $250 price target on the EV seller.
  • Earlier this week, Evercore expressed confidence that Tesla could hit its 30% margin target on the Model S and maintain a company-wide margin level above 25% after the Model 3 is introduced as the benefit of mass production factors in.
  • Not a direct comparison to Tesla's non-GAAP ex-ZEV margin rate at all, but for reference Ford reported an automotive segment operating margin of 6.7% last year.
  • TSLA +0.68% premarket to $309.10.


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