Analysts cut 3Q delivery estimates on Tesla
Shares of Tesla (NASDAQ:TSLA) are up in pre-market trading Friday despite estimates being cut by analysts from three different firms today.
Citi reiterated a Neutral rating and $278 price target on the electric automaker ahead of the company’s 3Q delivery report.
Citi analysts cut delivery estimates for the company’s 3Q to 450k from 468.5k, leading to a reduced EPS estimate of $0.75 from $0.81. The updated estimates reflect recent weekly China data, as well as the latest global Tesla registration data.
Citi remains constructive on Tesla’s strong global premium EV position. However, the analysts are skeptical on the company’s FSD/AV approach, which they view as “a critical input to the overall risk/reward assessment” given Citi’s positive stance on the AV opportunity.
Piper Sandler also cut delivery estimates for the automaker’s 3Q. Slashing estimates from 515k+ to 445k units, citing downtime in Shanghai and Austin as the reason for the change.
Tesla halted activity at its plants in Shanghai and Austin in preparation for launching their updated Model 3 and Cybertruck.
“Deliveries had been surprisingly strong up until recently,” wrote Piper Sandler analysts, “but the impact of shutdowns is now evident in weekly data.”
Piper reiterated their Overweight rating and $300 price target on the stock as they believe the intentional shutdowns should not be interpreted negatively. According to Piper Sandler analysts, “if Q3 results are a «miss», we doubt TSLA will sell off.”
Barclays reiterated an Equalweight rating on Tesla with a 12-month price target of $278 on the stock after adjusting 3Q delivery estimates down to 450k from 468.5k. The cut led Barclays to also trim EPS estimates for the quarter to $0.75 from $0.81.
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