The last first quarter of Tesla Inc. is "one of the biggest delays" ever seen in the 20s of technology coverage on the street, Wedbush analyst Daniel Ives said on Thursday.
According to the analyst, the company's leadership is aggressive and management does not do enough to reduce costs, keep capital and provide a lasting way for profitability. "Musk and Co in an episode of Twilight Zone act as if demand and profitability magically go back to Tesla's story," Ivs says.
It cuts the value of the shares to the equivalent of a retention of purchase and lowered its target price to $ 275 from $ 365. Ives is not unknown to technological issues, such as Apple's earnings warning in January shaving $ 75 billion of market capitalization on the iPhone for one day and urged Ives to reduce its price to Apple by more than a quarter.
Tesla shares fell 4 percent in New York on Thursday after the company reported a much higher than expected quarterly loss, rehearsing its forecast for the year, and hinting at the possibility of a post-Wednesday increase in capital.
"At this point, writing is on the wall that Tesla is likely to have to raise over $ 3 billion in the near future to support its capital and debt needs, given the current path of profitability that is another black a cloud over the name with now headed inexperienced financial director, Ives writes in a note to clients. "We continue to feel robotaxis, insurance products, and other endeavors are distracting from the growing demand woes that are not addressed, which is critical of our concern at this time."
The rest of Wall Street was also not cheering, as Joseph Spack of RBK said the results were "uglier than expected". The company already has 15 analysts who estimate the sale, compared with 12 with buy and 9 with ratings.
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Here's a summary of the analyst's comment.
JPMorgan, Ryan Brinkman
"While second-quarter supply guidance seems potentially aggressive, the 360,000 to 400,000-year projection implies a further 35% to 45% consecutive increase from the first half of 2019 to the second half of 2019, further emphasizes the risk of implementation related to the meeting. the figures that are implied to generate positive revenue and cash flow. "
Underweight, target price of US $ 200
RBC Capital Markets, Joseph Spack
– The results of the first quarter are more ugly than expected. An all-year supply guide has been maintained, but high inflation is needed, which may turn out to be optimistic. "
"The balance sheet is down to $ 2.2 billion, and we believe that the likelihood of an increase in capital has increased."
The prices are lower, the price is 200 dollars.
Cowen, Jeffrey Osborne
"Tesla appears to be entering an era of uncertainty as a period of normalizing demand after enjoying the last 18 to 24 months of the aggregate demand for Model 3 on the list of deposits."
"We think lower prices are to a large extent indicative of a demand fishing expedition."
"Even when Tesla repeated the guidelines, we believe the company has some of the lowest prospects for visibility in recent memory."
The prices are lower, the price is $ 160.
Evercore ISI, Arndt Ellinghorst
Tesla has just lost $ 700 million in a quarter. Reducing prices, while claiming extraordinary demand for all products, raises obvious questions and "red flags" about core demand. "
"The silver lining we're going to talk about is a change in sound … it's worth the idea of raising capital at this point."
The prices are lower, the price is $ 240.
Jeffreys, Philip Houhuy
"Beyond the title, the lack and the continuing stress we have seen positive surprises from the sustainability of gross profit, cash income and gross liquidity to claim that the shares are sufficiently revalued."
"Our Tesla calls are hard to live on, but we see value in EV technology / Tesla connectivity and experimentation (regardless of management style) and remain confident there is a way to sustainable profitability."
Prices buy the price of $ 400.
Piper Jafray, Alexander Potter
"Although logistical challenges – along with lower transaction prices – have an obvious impact on profitability for the first quarter, we think it's temporary."
"Guidance involves a recovery from the second half for both supply and margins, and that seems reasonable to us."
"The first quarter suffered from a particularly nasty combination of counter-winds, including seasonality, a large build-up of supplies outside the US (negative for logistics costs and working capital), and the drain of US tax incentives."
The prices are overweight, the price is $ 396.
Baird, Ben Kalo
"We think Tesla needs to raise capital; although it is not essential, we believe that this will be a positive catalyst and will remove the stockpile. "
"Demand will probably remain a focus for bears, although we share the constructive opinion of the leadership."
Prices exceed the price of $ 400.
User edge, Derek Glinn
"We believe the results of the second half will be more indicative of the main trends in demand, but we are seeing Tesla's expectations for another loss in the second quarter as a negative surprise."
"Together with Elon's comment that there is" merit "to raise additional capital, we now think that Tesla may not develop so quickly in the self-sufficient and capital-efficient producer we thought was possible only a few months ago."
The prices are the same, the price is $ 310 from $ 350.