- Credit Suisse analyst Dan Levy maintained Tesla Inc TSLA with an Outperform and cut the price target from $1,125 to $1,000 (37% upside).
- Levy expected Tesla's 2Q deliveries of 242,000, missing the consensus of ~280,000 due to the Shanghai COVID shutdown.
- Moreover, given the lower delivery outlook, the associated margin impact, and an expected Bitcoin impairment, he reduced the 2Q EPS estimate to $1.10 from $2.06, below the consensus of $2.08.
- Nevertheless, he remained positive on Tesla, as the long-term fundamentals were intact. He noted that the widening supply constraints would likely extend Tesla's lead over other OEMs in the race to EVs.
- Levy expected the robust fundamentals ahead should outweigh the near-term challenges for Tesla, like the recent growth sell-off, production disruptions in China, lingering semiconductor shortage, and magnified inflationary pressures.
- He believed the long-term case for Tesla was evident.
- Tesla remained the global leader in EVs amid rising supply chain risks.
- Tesla's lead in vertical integration and prior EV experience amplified its lead over other automakers in the race to EV.
- Levy reaffirmed his Outperform rating and remained positive on the stock. The Price Target cut reflected a higher discount rate.
- Price Action: TSLA shares traded higher by 4.06% at $733.87 on the last check Friday.
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