Tesla plunges nearly 8% after analysts say deliveries were 'substantially worse' than expected
div > div.group > p:first-child"> Shares of the company plunged 8 percent in pre-market trading after Tesla said late Wednesday evening that it delivered 50,900 Model 3 cars in the first quarter, below the 52,450 analysts expected, according to the consensus estimate from FactSet. Overall deliveries also fell short of consensus estimates.
"Altogether, we think the delivery results will put pressure on TSLA's shares, and corroborates our belief that volume expectations for the company's products in 2019 are too high with consumer demand likely lower as subsidies phase out in the US," said Goldman Sachs analyst David Tamberrino who reiterated his sell rating."Further, this likely puts downward pressure on our EBITDA and FCF estimates given the lower volume levels and worse utilization than anticipated.
"1Q19 is shaping up to be one TSLA may want to forget, but needs to explain to shareholders who own it as a LT disruptor. We felt the #1 2019 determinant for TSLA's share price was if it could prove to the mkt. it can be self-funding on a sustainable basis." "We think the disappointing results likely put pressure on consensus estimates for the full year especially for Model S/X deliveries . Further, we think the result likely fuels bearish investors' concerns about waning demand — especially as these disappointing results came even as the company expanded Model 3 deliveries internationally and began offering $35k variants of the Model 3.
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