Market Overview

Bank Of America Says Tesla's Delivery Figure Is Not 'That Impressive'

Bank Of America Says Tesla's Delivery Figure Is Not 'That Impressive'
Related TSLA
Here's Why You Shouldn't Buy Tesla's Hype
Leave The Driving To Tesla: Musk Introduces New Tech, Plugs Self-Driving Safety
Concerns About Product Efficiency, R&D Expenses Prevent Tesla From Shifting Into High Gear (Seeking Alpha)

In a report published Friday, Bank of America analyst John Lovall II commented that Tesla Motors Inc (NASDAQ: TSLA)'s announcement that it delivered 10,030 vehicles in the first quarter is a "positive surprise" but nevertheless "not that impressive."

According to Lovall, Tesla's first quarter delivery figure represents a 2 percent sequential growth from the 9,834 vehicles it delivered in the fourth quarter. The analyst said that Tesla stated that 1,400 units that were scheduled for delivery in late calendar 2014 slipped into the first quarter - implying a 23 percent quarter-over-quarter decline in deliveries (adjusted fourth quarter deliveries of 11,234 versus first quarter deliveries of 8,630).

Lovall noted that 10,030 deliveries represents a production run-rate below the company's installed capacity of about 1,300 vehicles per week. The analyst also pointed out that Tesla has been offering "significant" discounts on showroom models and "lightly-used" vehicles to meet its quarterly delivery guidance.

Bottom line, Tesla's deliveries guidance sets the stage for "very weak" first quarter financials and raises "significant doubt" around the company's ability to deliver 55,000 units in 2015.

Shares remain Underperform rated with an unchanged $65 price target.

Latest Ratings for TSLA

Oct 2016Goldman SachsDowngradesBuyNeutral
Sep 2016Cowen & Co.Initiates Coverage onUnderperform
Jun 2016Argus ResearchDowngradesBuyHold

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Bank of America John Lovall TeslaAnalyst Color Analyst Ratings Best of Benzinga


Related Articles (TSLA)

View Comments and Join the Discussion!