Tesla Inc TSLA reported record earnings, operating margins and free cash flow in the third quarter. The company missed analyst sales estimates. On Thursday, The Street reacts to the quarterly results – and adjusts the price targets downwards.
The Tesla Analysts: Morgan Stanley analyst Adam Jonas has given Tesla an overweight rating and a price target of $350.
RBC Capital analyst Joseph Spak has an outperform rating and lowered the price target to $325 from $340.
Mizuho Securities analyst Vijay Rakesh has a buy rating and lowered the price target to $330 from $370.
Wedbush analyst Daniel Ives has an outperform rating and lowered the price target to $300 from $360.
Needham analyst Vikram Bagri has a hold rating and no target price.
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The Tesla Takeaways: Jonas called Tesla’s third-quarter financial report “a clean 3Q earnings hit.” The analyst noted that the beat was accompanied by several headwinds during the quarter.
“We wish the FY23 consensus leaves more room for macro uncertainty,” Jonas said. “We were prepared for a loss of earnings from Tesla. Didn’t happen.”
Spak said investors could be too focused on missing Tesla’s third-quarter gross margins and overlooking other big things.
“Mid-term, we’re not overly concerned about demand, see a way back to 30% GM, and believe TSLA is an IRA (Inflation Reduction Act) winner,” Spak said.
The analyst said Tesla expects deliveries to have grown nearly 50% for the current fiscal year.
“In the long term, TSLA sees no demand problems and a positive trend, as an average production growth of 50% per year can be achieved.”
Rakesh lowered the price target on Tesla shares following the third-quarter earnings report citing “solid production ramp-up and stable profitability.”
“We believe Tesla remains well positioned, with Gigafactory Berlin at 2000/week Model Y and manufacturing in Texas…
