27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Whether Tesla Inc (NASDAQ:TSLA) has achieved its second-quarter targets for the Model 3 will be revealed in the coming week —and Goldman Sachs isn’t hopeful.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Analyst David Tamberrino maintained a Sell rating on Tesla with a $195 price target.
The Thesis
Based on VIN registrations, Model 3 production rates are seen to average around 2,200 per week for the second quarter, below both Tesla's guidance and an elevated consensus estimate, Tamberrino said in a Tuesday note. (See the analyst's track record here.)
Goldman Sachs expects 22,000 quarterly deliveries against a consensus forecast of 28,000 cars.
Tesla could strike a dubiously sustainable but psychologically critical 5,000-unit rate at the end of June with the aid of newly added assembly lines, Tamberrino said. The prospects around the target are seen to buoy the stock at its $330 level, although the metric may not be in focus much longer, the analyst said.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
“Investor conversations on the stock have moved past the 5,000-per-week run-rate production target," a figure most investors are giving the company credit for achieving as it enters the third quarter, he said.
Shareholders are now zeroing in on vehicle profit margins and the conversion of Model 3 reservations to higher-priced vehicles, Tamberrino said.
Given Tesla's quarter-to-date delivery cadence, Goldman Sachs expects a 4-percent year-over-year increase in combined Model S and X deliveries, which would amount to a consensus beat but a guidance miss.
Price Action
At the time of publication, shares were trading down 1.6 percent to $327.64.
Related Links:
Bernstein: Tesla's Auto, Services Gross Margins Don't Add Up
Musk Raises His Stake In Tesla, Bets Another $25 Million
Photo courtesy of Tesla.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.