Tesla Inc (NASDAQ: TSLA) is trading down this morning after the electric vehicles manufacturer said it will fail to deliver on its promise of a 50% growth in deliveries this year.
Bernstein analyst reacts to Tesla’s earnings call
What’s also hurting sentiment is that the multinational reported weaker-than-expected sales for its fiscal third quarter last night. (find out more)
Adding to the pain was the earnings call that particularly disappointed Bernstein’s Toni Sacconaghi.
The earnings call didn’t sit well with us. Answers to many questions on the earnings call were curt and almost dismissive, with CEO Musk instead repeatedly making very bold prognostications about Tesla’s future and capabilities.
For the year, the Tesla stock is now down nearly 50%.
But eventually, the Chief Executive gloated on the earnings call, Tesla Inc will be worth Apple and Saudi Aramco combined. Each of those two companies currently have a market cap of more than $2.0 billion.
Tesla shares could crash to $150
Nonetheless, the EV company had record operating profit in its recent financial quarter. Tesla attributed the projected hit to deliveries to issues in terms of “logistics” while production, it confirmed, will still be up 50%.
Also a positive was Musk’s comment that demand was “excellent” heading into Q4. Still, the Bernstein analyst wrote:
Tesla’s valuation appears to imply huge volume and industry leading profitability going forward, which is historically unprecedented.
Sacconaghi reiterated his “underperform” rating on the stock that, he warns, could crash to $150 a share – about a 30% downside from here.
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