Market Overview

Oppenheimer Sees No Q2 Surprises From Tesla

Share:
Oppenheimer Sees No Q2 Surprises From Tesla

Tesla Motors Inc (NASDAQ: TSLA) shares are up 1.7 percent on Thursday after the company reported big Q2 earnings and revenue misses. The company reported a net loss of $292.3 million on revenue of $1.56 billion, well short of analyst expectations.

Despite the top- and bottom-line misses, Tesla management did not change its projections of 50,000 vehicle shipments in the second half of 2016. The company shipped just 14,400 vehicles in Q2.

Oppenheimer analyst Colin Rusch wasn’t surprised by Tesla’s quarter, and the firm remains on the sidelines until Tesla can show some progress toward profitability.

Rusch noted that Tesla appears to be taking on increasing responsibility when it comes to technology development.

“It also appears to have taken a hard line with suppliers on timelines, pricing and allocation of resources,” he explained. “While we see potential benefits, we note increasing risk on supplier pushback.”

Related Link: How CEOs Build A Company's Brand Via Social Media: Legere Vs. Musk

Auto gross margins came in about 2 percent above expectations in the quarter, but forward guidance of another 2–3 percent improvement by Q4 is in line with expectations.

Despite the disappointing quarter, the long-term Tesla story appears intact, which is likely the reason for the positive market reaction.

Oppenheimer maintains its Perform rating on Tesla.

At time of writing, Tesla was up 1.60 percent on the day at $229.40.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Disclosure: The author holds no position in the stocks mentioned.

Latest Ratings for TSLA

DateFirmActionFromTo
Nov 2019MaintainsBuy
Oct 2019MaintainsEqual-Weight
Oct 2019DowngradesNeutralSell

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings News Guidance Travel Analyst Ratings Movers Tech Best of Benzinga

 

Related Articles (TSLA)

View Comments and Join the Discussion!

4 Keys For OnDeck Capital From Oppenheimer's Coverage Initiation

UBS Takes A Look At Costco's July Sales