Tesla Analyst Slashes Price Target By Over 12% To Reflect Macro Headwinds
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Mizuho Vijay Rakesh, analyst Tesla Inc (NASDAQ: TSLA) with a Buy rating but lowered the price target from $285 to $250.
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TSLA reported December quarter deliveries at 405.3k vehicles (lower than consensus 418.0k), but this was mostly due to the Shanghai shutdown.
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Total deliveries for the full-year 2022 were 1.31M units up 40% Y/Y. Overall production rose 47% Y/Y in line with previous TSLA commentary.
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TSLA observed an increase in vehicles in transport in the December quarter.
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Rakesh says that concerns continue around a weakening customer driven by rising interest rate and other macro concerns. These could continue to be a 1H23E headwind.
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An analyst also observed a one-week shutdown of the Shanghai factory (45%+ of TSLA’s annual capacity).
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Rakesh thinks the December quarter’s top line may be challenged by price cuts in China (9-10%) and the U.S. ($7,500 discount on Model 3/Y) in October.
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Analysts noted that the Inflation Reduction Act could be introduced with certain Model 3/Y’s currently eligible for the $7,500 credit.
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TSLA has begun to ramp up the Semi with deliveries beginning in December. Rakesh believes volumes at the moment are low. However, the Cybertruck will likely be available for production starting mid-2023.
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China is becoming more competitive as the largest market for BEVs in the world. BYD Company, Ltd (OTC: BYDDY() Geely Automobile Holdings Ltd (OTC: GELYF) ramp up new EVs at an attractive price point.
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New EV models such as the Silverado EV, and the popularity of Ioniq 5 EV may increase competition concerns in the U.S.
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Overall, 2022 EVs increased 65% Y/Y (vs. the broader LVP which rose 6% Y/Y).
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Price Action TSLA shares fell by 2.71% to $110.56 during the Thursday check.
The latest ratings for TSLA
|
Date |
Firm |
Act Now |
From |
To |
|---|---|---|---|---|
|
February 2022 |
Daiwa Capital |
Upgrades |
Neutral |
Outperform |
|
February 2022 |
Piper Sandler |
Keep it up |
Overweight |
|
|
Jan 2022 |
Credit Suisse |
Upgrades |
Neutral |
Outperform |
View More Analyst Ratings for TSLA
View the Latest Analyst Ratings
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