The article was written by Motek Moyen ResearchSeeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.
Summary
I reiterate my March 3 buy recommendation for Tesla. In spite of -12% YoY lower Q3 revenue, the stock is again trading above $326.
Investors like it that greater efficiency is helping Tesla become more profitable. Reduced manufacturing and material costs makes Tesla a better long-term investment.
Tesla is now generating most of its sales from its cheapest car model, the Model 3. It still managed to deliver a better-than-expected Q3 GAAP net profit of $143 million.
Tesla manufactured and delivered almost 80k Tesla 3 models in Q3 2019. Tesla’s future prosperity is now insured – Tesla is now a legitimate consumer car vendor.
Another tailwind is Tesla 3rd generation Solar Roof. Tesla is now poised to become the world’s best installer of solar power roofing.
Naman Shukla is an Analyst at I Know First. He writes and invests in the stock market. Ranked in the top 8 percentile in TipRanks.com. Featured on SeekingAlpha.com, GuruFocus.com, Valuewalk.com among others.
Tesla Stock Predictions: Summary
Tesla’s autonomous car prospects will reap great rewards.
In the words of CEO Elon Musk, the past few months have been “excruciating” for the luxury electric car manufacturer, Tesla. Shares have been down by over 35% since the beginning of the year, compared to the S&P 500, which has been down 10%.
Tesla Motors Inc. (NASDAQ:TSLA) reported their second quarter earnings on Wednesday, and it appears that investors are going to have to be patient for longer than expected. Some projected that the stock would be climbing up closer to $300 as the company was addressing some of its issues, like its sales in China. However, the company’s losses tripled and it cut guidance for its deliveries this year.
The stock price dropped over 7% in after-hours trading as a result, with the company’s short-term outlook growing worse. With the stock price climbing almost 21.5% so far this year, the stock was poised for a pullback due to concerns over its cash flow and whether the company can live up to its future projections. Long-term investors who are in it for the long haul with Tesla should be excited to add to their positions, as the stock could fall further before things turn around.
Tesla Motors, Inc. (TSLA) has maintained its projection for 55,000 vehicle sales during the current fiscal year. With 10,045 Model S sedans delivered during the first quarter and forecasted deliveries for 10,000 to 11,000 vehicles for the second quarter, it is obvious that the company will have to have increased sales during the second half of the year. The release of the Model X crossover SUV and the subsequent ramping up of production will make this possible. Recent developments both domestically and abroad will help Tesla meet its goal. Along with the amazing orders for stationary batteries, the forecast for the company is bullish looking ahead, even though profits will remain low for the rest of 2015.
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