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Home / Business / Tesla's revenue was a "debacle," says the longtime bull in scorching comments

Tesla's revenue was a "debacle," says the longtime bull in scorching comments



Tesla Inc.'s first quarter revenue and related analyst conference call was "one of the (biggest) debacles we've ever seen," said a longtime Tesla cop who said on Thursday he wanted it throwing a white towel and

Daniel Ives of Wedbush lowered his rating for Tesla

TSLA, -2.13%

of Buy Out's Outperform, in a scorching note that reflected equal amounts of frustration and desperation.

"In our 20 years of covering tech stocks in the street, we consider this quarter as one of the biggest debacles we've ever seen, while Musk & Co. did so in an episode from the Twilight Zone As if demand and profitability magically returned to Tesla history, "Ives wrote to investors. "Ultimately, we believe that corporate governance is aggressive, and that management / management does not take aggressive action to reduce costs and stop future capital preservation efforts and sustainable development of road profitability."

Tesla Brokered Late Wednesday ̵

1; Expected Adjusted First Quarter Loss and Missing Sales Forecast, though Wall Street appeared to be making commitments to executives during their call with analysts, including that the carmaker would be profitable again this year.

For the full report, read: Tesla misses earnings estimates for the first quarter, but Wall Street focuses on earnings expectations

Do not miss: Elon Musk stays in Movement Tesla's Finish Line

Telsa posted a loss of $ 702 million or $ 4.10 per share in the first quarter, compared to a GAAP loss of $ 4.19 per share for the same period last year. Adjusted for one-time effects, Tesla said it had lost $ 494 million, or $ 2.90 per share, compared to a loss of $ 3.35 per share a year ago.

Sales reached $ 4.5 billion, compared to $ 3.4 billion a year ago.

Wall Street analysts are skeptical of Tesla's Robo Taxi plans

Analysts surveyed by FactSet expect an adjusted loss of $ 1.15 per share for the quarter on revenue of $ 5.4 billion. The loss forecast per share had widened in recent days after Tesla reported GAAP and adjusted earnings in the third and fourth quarters.

"In the 20 years we cover tech stocks on the road, we consider this quarter as one of the top debacle we've ever seen while Musk & Co. in an episode from the Twilight Zone like that do as if demand and profitability magically returned to Tesla history. "


Daniel Ives, analyst, Wedbush

The stock fluctuated between gains and losses in the extended session on Wednesday, but fell nearly 3% on Thursday.

JPMorgan analysts, quoted by Ryan Brinkman, said they expected a negative reaction. Tesla also missed margin and free cash Flow estimates provide a forecast that requires another loss in the second quarter, against consensus expectations for profit.

"Management also seemed to be less against a capital increase than 'some merit' for the idea that in our This view serves to highlight the dilution risk that is likely to increase after a cash flow in the first quarter and the cash balance below JPM and consensus expectations, "Brinkman wrote in a note to customers.

Now Watching: Elon Musk is just another car salesman.

JPMorgan rates the stock as underweight with a price target of $ 200, 20% below its current trading level. The company predicts that second quarter deliveries will increase 43% to 59% from the first quarter, even though losses are expected at that level, the analyst said.

The full-year outlook for 360-400K means a further increase of around + 35% to + 45% from 1H19 to 2H19. This highlights the settlement risk required to achieve the implied numbers required to achieve a positive result and cash flow, "Brinkman said.

See: Tesla will provide insurance in about a month, says Musk.

RBC analyst Joseph Spak said the numbers are "uglier than expected" and likely to approve a capital increase. Spak pointed out that spending on research and development was the lowest since the fourth quarter of 2016. "Elon spoke of putting Tesla on a 'Spartan diet', and although we do not doubt that the company is in As the past has been inefficient, the low Capex + R & D and, of course, lower sales are not hallmarks of a high growth company, but TSLA continues to be rated as one, "he wrote in a note to clients reaffirming his underperformance rating [194559008] Tesla Cuts "Musk Friendly" Board in the midst of SEC Battle

In Bernstein, analyst Toni Sacconaghi said that the elephant is always in space was still in demand and asked if the report and the solicitation really contained any information.

"We can not help feeling that Tesla is the subject deceived the earnings request last night. Management has used predictions rather than incremental data points, "he wrote in a note. "While we have long seen a plausible route to 400,000 Model 3 sales, our short-term visibility of demand / price elasticity remains limited."

Bernstein rates the stock as a market performance with a target price of $ 325.

Piper Jaffray took a rather positive tone, reiterating his overweight valuation of Tesla's stock and speculating that the downtrend will be limited to the first quarter.

"Although logistical challenges – long with lower transaction prices – had an obvious impact on performance, we think profitability was only temporary in the first quarter," analyst Alexander Potter wrote in a statement. "Guidance implies a recovery in deliveries and margins in the second half, and this seems reasonable to us.

The first quarter "suffered from a particularly unpleasant combination of headwinds, including seasonality, a large increase in deliveries outside the US (negative for logistics costs and working capital), and the phasing out of tax incentives in the United States. Said Potter.

Tesla made a promise to improve affordability through price reductions and margins. However, this is an issue of the first quarter, which should not be repeated, he said. Piper still has a price target of $ 396.

The Tesla share lost 0.6%. and has fallen by 22% so far this year. The S & P 500

SPX, -0.24%

gained 16% in 2019, while the Dow Jones Industrial Average

DJIA, -0.86%

has gained 9%.


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