- Wedbush's Dan Ives dives right into Tesla's (TSLA -7.7%) deliveries update this morning.
- "While the delivery numbers were in line with Street estimates, the main focus this morning will be Model 3 deliveries which hit our estimates but missed the Street’s by roughly 3%. Production numbers (86,555 vehicles, 8% q/q) were also generally in line with our expectations and speak to Tesla’s ability to get closer to the 6k per week mark for Model 3 which remains the key bogey heading into 2019 for Fremont and Gigafactory," writes Ives.
- The analyst calls the price cut by Tesla a left field move that could be a potential short-term hit to the bull case on profitability. "We remain bullish on the Tesla story given our view that the company is in the early innings of a transformational EV growth opportunity for the next decade although the modest Model 3 delivery miss this quarter, in the near term, will be the focus of investors and put pressure on shares," he notes.
- Wedbush keeps an Outperform rating on Tesla and 12-month price target of $440 (+40% upside).
- Previously: Tesla plunges after deliveries update, price cut (Jan. 2)
Original article