(Ticker: TSLA) will report profits after the close on January 30, Robert W. Baird argues, however, that investors should buy the stock in advance of the report. Analyst Ben Kallo repeated an outperformance valuation and a target price of $ 465 on Friday in Tesla. He said that the drop in expectations had "reduced the supply of positive response" (19659005) by more than 10% since the beginning of 2019, and there was a recent stroke after CEO Elon Musk announced thousands of layoffs keep the cost of the company's electric vehicles low. This brought the investors' nerves before the forthcoming fourth-quarter earnings report
The twist : Kallo argues that investors are over-advised about Tesla, meaning that quarterly results turn out to be less than bad feared that the stock could burst. He says we could also get an update from management on other issues that might worry investors. It is possible to update the continued robust demand, the potential for generating cash in the first half of the year or guidelines for the growth of operating expenses.
That said, while Kallo expects shipments to decline sequentially in the first quarter, it says that this is "just a time issue" related to European shipments. While this should be "well understood for the market at this point, we believe that comments on the fourth call will be important," he said for Tesla, and that the market puts too much faith in Musk's ability to unsafe Waters as tax credits expire and competition increases. Others have referred to the sell-off as a buying opportunity, pointing out more stability in Tesla's board of directors and other promising businesses. The stock rose after Tesla made a profit in October and the second quarter after the second quarter of July.
Tesla has had great success in the past, so expect fireworks next week.
Write to Teresa Rivas at [email protected]