In a research report on Monday, Barclays' Autos & Auto Parts analyst maintained an Underweight rating on Tesla's stock with an unchanged $165 price target.
#LetsMakeADeal
According to Johnson, Tesla's CEO Elon Musk "served up the pie he promised" when he reported the company's third-quarter delivery figures.
Tesla reported around 24,500 delivers in the third quarter, ahead of the analyst's estimate of 22,500 which was driven by a "large push throughout the quarter" and benefited from lower priced Model S 60kwh sales, a two-year leasing program and discounts on floor models.
Johnson added that despite the sales push Tesla's gross margins likely expanded in the quarter as higher Model X margins more than offset the "sequentially weaker" Model S margins.
#MindTheGAAP
Johnson pointed out Tesla's "less noticed" announcement it will no longer report non-GAAP revenue. The analyst explained that the difference between GAAP and non-GAAP revenue is the treatment of leases and buyback guarantees.
For a growing company like Tesla, GAAP revenue will be "consistently lower" than non-GAAP. Ironically, the analyst's revised third-quarter estimate under the old account method resulted in a quarter profit but the new accounting system yields a loss.
#SwipeLeftOrSwipeRight?
Finally, Johnson argued that the vote later this fall to approve or reject Tesla's merger with SolarCity Corp SCTY is the stock's "most crucial catalyst" — at least this year.
The analyst remains skeptical on the acquisition, noting that Tesla's cash burn is "already intense," the solar market is "challenging" and Tesla "did not seriously consider lower-cost solar assets."
Nevertheless, Johnson believes the merger will proceed as skeptical investors may realize that a no vote "would imperil Tesla's ability to raise the funds needed" for its Gigafactory and Model 3 sedan.
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