- Cowen lowers its estimate on Tesla (TSLA +2.6%) Model 3 deliveries to 2.25K vs. 9.1K prior and 5K consensus. Model S and Model X deliveries volume is expected to be solid for the quarter.
- "[W]e still are convinced that investors aren't fully acknowledging the competitive threat that is growing in 2018 and 2019 in the EV segment, and the cash burn that Tesla will experience in the coming years (the narrative in the last few months has shifted from cars to Class 8 trucks and recently pickup trucks). The recent bond offering is now trading below par and we believe another equity raise will be needed in the next 3 to 6 month," writes analyst Jeffrey Osbourne.
- "The narrative around high volume manufacturing of the Model 3 and hitting the 25% gross margin target will need to be amplified by management in order for investors to digest such a capital raise in our view," he adds.
- Cowen has Tesla rated at Underperform with a price target of $170 versus the Street average of $333.
- Now read: Why Does Tesla Service Have Negative Margin?
Original article