Market Overview

Keybanc Says Tesla Deliveries Tracking Above Estimates, Raises Model 3 Deliveries Forecast To 30,000

Keybanc Says Tesla Deliveries Tracking Above Estimates, Raises Model 3 Deliveries Forecast To 30,000
Related TSLA
Forecasting How Shares Of Netflix, Tesla, And First Solar Will Perform This Week
Benzinga's Bulls & Bears Of The Week: AMD, Disney, Nike, Tesla And More
Tesla's Borrowing Market Improves (Seeking Alpha)

Tesla Inc (NASDAQ: TSLA)’s stock has stood strong in the month leading up to the quarter’s end. One analyst found such strength is performance-backed.

The Rating

KeyBanc Capital Markets analyst Brad Erickson maintained a Sector Weight rating.

The Thesis

KeyBanc’s store checks found Model 3 deliveries tracking about 50 percent higher than projections and achieving “meaningful ramp.”

By Erickson’s latest estimates, Tesla is on pace to deliver 30,000 to 35,000 in the second quarter, and he accordingly raised his forecast from between 20,000 and 25,000 to 30,000.

He additionally increased 2018 deliveries estimates from 98,182 to 118,182 and reiterated expectations for positive Model 3 gross margins in the third quarter.

“While the longer-term debate on TSLA remains more balanced, keeping us Sector Weight, we maintain that evidence supporting the bear case is not likely to emerge in the near term, in our view,” Erickson wrote, referencing softened demand or poor production ramping.

The analyst remains undeterred by anecdotes around safety quality and anticipates consumer perceptions improving.

Price Action

At time of publication, Tesla shares were trading up 2.5 percent at a rate of $340.27.

Related Links:

Musk Says Tesla Targets August Date For Updates Foundational To Autonomy

Morgan Stanley Isn't Buying Tesla's Claims For Profitability, Positive Cash Flow, China Prospects

Latest Ratings for TSLA

Jun 2018Vertical GroupMaintainsSellSell
Jun 2018NomuraReiteratesBuyBuy
Jun 2018NeedhamInitiates Coverage OnHold

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Brad Erickson KeyBanc Capital Markets Model 3Analyst Color Reiteration Top Stories Analyst Ratings Best of Benzinga


Related Articles (TSLA)

View Comments and Join the Discussion!