While Tesla Motors Motors Inc (NASDAQ:TSLA) announced that it will soon break ground to build one of its two gigafactories, this month the buzz is all about Tesla’s Q1 results.
Tesla in the News
Tesla Motors Motors Inc (NASDAQ:TSLA)’s Q1 numbers revealed that the company earned $17 million, or 12 cents a share, beating analyst estimates of 6 cents per share. The company also reported $713 million in revenue for the quarter, up 27% from $621 million the year before. Tesla Motors Motors Inc (NASDAQ:TSLA) also made 7,535 of its Model S sedans during Q1, beating its own projection of 7,400 cars. Many analysts seemed impressed by Tesla this quarter.
What Does This Mean For Tesla’s Stock?
Robert W. Baird analyst Ben Kallo reiterated his BUY rating and $275 price target after Tesla’s Q1 numbers were revealed, looking forward to the next quarter. Even though the company beat Street estimates, Ben believes that Tesla Motors Motors Inc (NASDAQ:TSLA) will encounter some added pressure next quarter. Ben noted, “Our long-term thesis remains intact as TSLA progresses on all fronts including Model S sales, infrastructure build-out, and new model developments. We would be aggressive buyers of the stock.” Ben also pointed out that, “TSLA guided R&D to increase 30% q/q and SG&A 15%, which will fund new models and infrastructure build-out. We are increasing our 2014-2016 operating expenses.” Ben has a 75% success rate recommending Tesla and a +27.7% average return over S&P-500 on the stock. Ben is ranked number 22 out of 3057 analysts with an overall +11.4% average return over S&P-500.
However, Goldman Sachs analyst Patrick Archambault maintained his HOLD rating with a $200 price target, instead of raising his rating to BUY. Patrick was impressed with Tesla’s Q1 numbers, but he also pointed out that, “shares fell 7.6% in the aftermarket, which we believe was due to the following factors: 1) 1Q deliveries of 6,457 and 2Q guidance of 7,500 came in below StreetAccount consensus of 6,600 and 8,450, respectively, implying a steeper back-end loaded curve to the company’s 35k target which some had thought was conservative, and 2) steeper opex guidance for 2Q which we believe carries through to higher full year 2014/2015 SGA/R&D expense than many had modeled.” But, Patrick is looking forward to Tesla Motors Motors Inc (NASDAQ:TSLA)’s potential volume stating, “the 1Q14 run rate of Europe and NA sales implies about 10k incremental sales are needed from Asia to hit 2014 guidance which seems very doable if Europe and NA registrations hold steady and we think that will remains a key focus in coming quarters.” Patrick is ranked 2190 out of 3057 analysts, with a -1.5% average return over S&P-500 and a 59% success rate of recommended stocks.
Conclusion
Tesla Motors Motors Inc (NASDAQ:TSLA)’s Q1 numbers have certainly impressed analysts, leaving some to recommend BUY with confidence, while others are still impressed, but cautiously recommend HOLD.
Jordan Faigen covers financial markets and the latest stock market news. She can be reached at [email protected]
