Tesla: share falls with Barclays worrying about margins
(CercleFinance.com) - Tesla shares fell significantly on Wednesday, as analysts at Barclays expressed concern about the electric vehicle manufacturer's margins.
The share closed down 3.1% - although it has still risen by over 60% in the last three months.
According to Barclays' teams, the publication of Q2 results, scheduled for 23 July, could well force investors to open their eyes to the difficulties that the group is still experiencing with its fundamentals.
The broker fears that the publication will somewhat offset the favourable stockmarket momentum that the stock has enjoyed since May.
Barclays says that the figures will probably highlight the pressure currently being exerted on the company's margins, even though they may be starting to approach a bottom level.
For Q2, the analyst expects an automotive gross margin of 16%, below consensus, due to low sales prices for its models.
However, Barclays believes that any feverishness in the share price that may follow this disappointment will prove shortlived, before the market turns its attention back to the promise of developments in autonomous driving and AI.
While raising its price target from $180 to $225 (cp: $248.5), the professional renews its 'equal weight' recommendation on the stock.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The share closed down 3.1% - although it has still risen by over 60% in the last three months.
According to Barclays' teams, the publication of Q2 results, scheduled for 23 July, could well force investors to open their eyes to the difficulties that the group is still experiencing with its fundamentals.
The broker fears that the publication will somewhat offset the favourable stockmarket momentum that the stock has enjoyed since May.
Barclays says that the figures will probably highlight the pressure currently being exerted on the company's margins, even though they may be starting to approach a bottom level.
For Q2, the analyst expects an automotive gross margin of 16%, below consensus, due to low sales prices for its models.
However, Barclays believes that any feverishness in the share price that may follow this disappointment will prove shortlived, before the market turns its attention back to the promise of developments in autonomous driving and AI.
While raising its price target from $180 to $225 (cp: $248.5), the professional renews its 'equal weight' recommendation on the stock.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.