Tesla Bull Predicts Q1 Beat On Back Of This Factor But Hopes Elon Musk 'For Credibility' Doesn't Blame High Interest Rates For Delivery Slide
Portfolio Pulse from Shanthi Rexaline
Gary Black of Future Fund predicts Tesla, Inc. (TSLA) will surpass Q1 earnings expectations, potentially aided by $926 million in full-self-driving deferred revenue. He anticipates flat 2024 delivery growth at 1.8 million units, a figure already priced into the stock. Black hopes CEO Elon Musk won't blame the Q1 volume decline on high interest rates, noting that EV competitors saw 15-20% growth. He suggests Tesla could meet its 2024 delivery estimate by increasing advertising and resolving production issues.
April 12, 2024 | 9:51 am
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Tesla is expected to surpass Q1 earnings expectations, potentially boosted by full-self-driving revenue. Flat 2024 delivery growth is anticipated, with a call for increased advertising to support this target.
The positive earnings forecast, based on deferred revenue from full-self-driving features, suggests a potential short-term uplift for TSLA stock. However, the anticipation of flat delivery growth for 2024, already priced into the stock, may temper the impact. The recommendation for increased advertising and resolution of production issues could support long-term growth, but the immediate market reaction may focus on the earnings beat and management's guidance.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100