Market Overview

KeyBanc: Tesla's Q2 Numbers Are A Boon For Bulls

KeyBanc: Tesla's Q2 Numbers Are A Boon For Bulls
Related TSLA
Trump Threatens European Auto Tariffs, But May Have Himself To Blame For Record Trade Deficit
Politician Accounts Hacked By Fake Elon Musk Bitcoin Scam
It's Not Just Norway: Jaguar's Electric Car Is Beating Tesla In Other European Countries, Too (Seeking Alpha)

Tesla Inc (NASDAQ: TSLA) boasted over the weekend that it met its quarterly production goal, although the figures were reportedly achieved beyond deadline.

Success or not, KeyBanc Capital Markets was satisfied.

The Rating

Analyst Brad Erickson maintained a Sector Weight rating on Tesla with a $300 price target.

The Thesis

Tesla’s 18,440 Model 3 deliveries fell far short of KeyBanc’s 30,000 forecast and the consensus estimate of 26,646. Investors should be content after counting in-transit vehicles, which bring the total to 29,606, Erickson said in a Monday note. (See the analyst's track record here.)

Production rates were given a similar pass.

“While Model 3 deliveries came up well short of expectations, production ramping to 28,578 total and 5,000 in the past week should assuage some concern that it can build the car at higher volumes,” the analyst said. 

In another boost to the bull thesis, Tesla reported that its reservation cancellation rate is not as high as reports have suggested, and reiterated guidance for positive GAAP net income in the third and fourth quarters.

KeyBanc's Sector Weight rating is justified, as investors already appreciate a "perceived innovative superiority" for the company, Erickson said. 

Price Action

Tesla shares were set to open down 0.87 percent Tuesday.

Related Links:

Baird Still Buying Tesla After Shareholder Meeting, Calls Energy Opportunity Underappreciated

Bernstein: Tesla's Auto, Services Gross Margins Don't Add Up

Photo by Brett Hershman. 

Latest Ratings for TSLA

Oct 2018Canaccord GenuityMaintainsHoldHold
Oct 2018JMP SecuritiesInitiates Coverage OnMarket Outperform
Oct 2018MacquarieInitiates Coverage OnOutperform

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Brad Erickson KeyBanc Capital MarketsAnalyst Color Price Target Reiteration Top Stories Analyst Ratings Best of Benzinga


Related Articles (TSLA)

View Comments and Join the Discussion!

Latest Ratings

ALRMImperial CapitalUpgrades58.0
ANDXSunTrust Robinson HumphreyDowngrades41.0
CSLLongbow ResearchUpgrades122.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Anheuser-Busch Exec Talks New Beers, Aluminum Tariffs

Benzinga's Top Upgrades, Downgrades For July 3, 2018