Wall Street Record: According to Q1 Figures: New Street Research Raises Tesla Share Price Target to Over $ 1,000 | message

—• Tesla positively surprises with Q1 results
• Tesla stock is already recovering from the Corona slump
• Analyst awards record price target

Last Wednesday, Tesla announced its past quarter results. Experts had expected a loss, but the California e-pioneer was surprisingly able to generate a surplus. This also seemed to be positive for experts.

Third quarter in a row at a profit

As the company said last week, Tesla had a $ 16 million profit in the first quarter of 2020. The carmaker was able to post a profit for three consecutive quarters since the company was founded. Sales were nearly $ 6 billion, 32 percent up on the previous year.

Despite the strain of the corona pandemic and the associated restrictions, Tesla was able to deliver more cars than expected in Q1. 88,500 customers received a new Tesla by the end of March – in the same period the company produced 102,672 cars. Despite the corona pandemic, the group still believes that it will be possible to achieve the delivery target of 500,000 vehicles this year. In 2019, Tesla brought 367,500 cars to its customers.

New Street Research raises Tesla price target

Some analysts were pleasantly surprised by Tesla’s quarterly figures. So does Pierre Ferragu from New Street Research.

My bullish stance on $ TSLA was that they could get to 25% gross margin by 2025. They just posted 25.5% for last quarter. I almost feel betrayed. What am I going to do in the next 5 years? ????

– Pierre Ferragu (@p_ferragu) April 29, 2020

He wrote of a groundbreaking gross margin as the reason for now significantly higher expectations. The Model Y is already proving to be profitable with 5,000 vehicles manufactured, as tesmanian.com Ferragu says from his note. New Street Research is therefore increasing the expected gross margin for 2025 from 25 percent to over 30 percent and until then expect an EBIT range of $ 25-32 billion. Ferragu therefore left his rating for the Tesla share at “buy”, raising the price target from $ 800 to $ 1,100 – a new Wall Street record.

More analyst votes

Musk is obviously very frustrated with the current order to stay at home, especially since the main artery in Fremont remains in shutdown mode. He cleared his anger in the conference call after the figures were released. Wedbush therefore believes that reaching the original delivery threshold of over 500,000 units by 2020 is practically impossible because Wall Street is now incorporating these circumstances into its estimates for the year, according to analyst Daniel Ives. Wedbush’s rating for the Tesla share is therefore “neutral”, the price target, the experts have raised, as TheStreet reports, from $ 425 to $ 600.

Barclay’s rating for the Tesla share is “underweight”, the analysts keep the price target at $ 300. Against the background of the Corona crisis and problems with other vehicle manufacturers, the experts had expected a drop in profits. Although Tesla was cautious for the second quarter as well as for the full year, the experts at Barclays, according to TheStreet, expect Tesla to be able to raise money soon and expect a bullish Battery Day.

Morgan Stanley believes the first quarter results give long-term fans no reason to seriously question or doubt their beliefs. Most still believed that COVID-19 would only have a temporary impact on the company and that Tesla 2021 should deliver a far larger number of vehicles than 2019, TheStreet analyst Adam Jones said. Morgan Stanley ranks Tesla shares as “equal-weight” and keeps its price target at $ 440.

The Tesla share has already recovered somewhat from its slump due to the coronavirus crisis in recent weeks. In early February, it still hit its 52-week high at $ 968.88, then fell to around $ 350 by mid-March and, after breaking the $ 800 mark last week, is now around $ 760 (as of: Closing price on May 5, 2020).

Editorial office finanzen.net