Tesla's Rare Double Miss: Analyst Expects Wall Street To Revise Estimates After Q3 Earnings Call Earns 'Not Good' To 'Terrible' Reviews
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) reported its first double miss in over four years, leading to a 5% drop in after-hours trading. The company's Q3 earnings per share and auto gross margin fell short of estimates. Tesla's earnings quality was also questioned due to higher than expected regulatory credits and a lower tax rate. Despite the disappointing results, Future Fund's Managing Partner, Gary Black, expressed continued interest in the stock, citing the attractive 2024 P/E multiple, the imminent start of Cybertruck deliveries, and the likelihood of a full self-driving licensing deal. Future Fund has set a $300 price target for Tesla.
October 19, 2023 | 8:16 am
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NEUTRAL IMPACT
Future Fund, which holds Tesla as its second-largest holding, remains interested in the stock despite its disappointing Q3 earnings. The fund has set a $300 price target for Tesla.
As Tesla is the second-largest holding in Future Fund's portfolio, the fund's continued interest in the stock and its $300 price target could potentially have a positive impact on the fund's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tesla's Q3 earnings fell short of estimates, leading to a drop in stock price. However, Future Fund's Gary Black remains interested in the stock due to its attractive 2024 P/E multiple and the imminent start of Cybertruck deliveries.
Tesla's disappointing Q3 earnings have negatively impacted its stock price. However, Future Fund's continued interest in the stock, due to factors such as the attractive 2024 P/E multiple and the imminent start of Cybertruck deliveries, could potentially mitigate some of the negative impact.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100