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Making Sense Of Tesla's Vehicle Delivery Miss

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Making Sense Of Tesla's Vehicle Delivery Miss
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  • After the market closed on Friday, Tesla Motors Inc (NASDAQ: TSLA) announced that it delivered 11,580 vehicles in the third quarter of the year, which was just about inline with what the company projected at the end of Q2.
  • Following the news, Oppenheimer reiterated an Outperform rating and $340 price target on the stock.
  • Shares of Tesla were flat on Monday.

In a report issued Sunday, analysts Colin Rusch and Noah Kaye point out a few key issues to take into account regarding the slight delivery miss.

Management said that downtime related to the launch of the Model X, which had been included in its guidance, impacted production and shipments negatively. It should be noted, however, that while shipments fell 3.5 percent below guidance, the actual number of vehicles not shipped (420) is quite small. The analysts believe the difference can be made up in the fourth quarter of 2015.

Related Link: Oppenheimer Reviews Tesla's Model X: 'Impressive As Expected'

Having finally completed the launch of the Model X, development spending is bound to moderate, leading to improved operating leverage, “especially given the extensive sales and service build-out over the last two years.”

The analysts think investors will focus on the company meeting its shipment guidance for the full year, the launch of Tesla’s stationary storage business, and “progress on the Gigafactory and development of the Model 3.”

Editor's note: A previous version of this article stated Tesla's projected Q3 deliveries were ~12,000.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for TSLA

DateFirmActionFromTo
May 2017Independent ResearchInitiates Coverage OnHold
May 2017Morgan StanleyDowngradesOverweightEqual-Weight
May 2017Evercore ISI GroupReinstatesOutperformOutperform

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Colin Rusch Model X Noah Kaye OppenheimerAnalyst Color Reiteration Analyst Ratings Best of Benzinga

 

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