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Here's How Tesla Is 'Hitting A New Gear'

Here's How Tesla Is 'Hitting A New Gear'
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In a report published Thursday, Credit Suisse analyst Dan Galves commented on Tesla Motors Inc (NASDAQ: TSLA)'s international sales, noting that Europe is "hitting a new gear" and China "may be turning a corner."

New Gear In Europe

Focusing on Europe, Galves noted that initial March volume data from European countries indicates a "substantial uptick" in demand for Tesla's Model S vehicle. The analyst now expects first quarter deliveries of approximately 3,500 units in Europe, a 1,000 unit uptick from the same quarter a year ago.

Galves said that strong demand for all-wheel drive vehicles was seen in Northern European countries (Norway, Sweden) while deliveries are "looking up substantially" in France, Germany and Switzerland.

Related Link: Is Tesla About To Announce A Motorcycle?

Turning A Corner In China

Switching to China, Galves stated that after several "significant missteps" since Tesla's initial launch in 2014, a new management team, engineering improvements and a decision to handle home-charging access are "paying early dividends." However, the analyst added that he isn't expecting much improvement in 2015, the market will be "big" in the medium-term.

Bottom line, Galves suggested that Tesla's 9,500 vehicle delivery guidance for the first quarter appears to be beatable. Looking forward, a full-quarter of S85D production will lead to further sequential growth in Europe while U.S. growth should be driven by more production weeks and improved benefits from better leasing options.

Shares remain Outperform rated with an unchanged $290 price target.

Latest Ratings for TSLA

Apr 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight
Apr 2018Vertical GroupInitiates Coverage OnSell
Apr 2018JefferiesUpgradesUnderperformHold

View More Analyst Ratings for TSLA
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Posted-In: Dan Galves Tesla Tesla China Tesla Europe Tesla Model SAnalyst Color Top Stories Analyst Ratings Best of Benzinga


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