Tesla deliveries estimate cut at Deutsche Bank after Shanghai shutdown
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Teslaâs (NASDAQ:TSLA) troubles in China caused Deutsche Bank analyst Emmanuel Rosner to temper his targets for deliveries.
âWe cut our 2Q deliveries estimate by 65k to 245k units, reflecting a prolonged Covid-19-related shutdown and logistical challenges in the Shanghai factory,â he explained. âRecall that during the Q1 call, CEO Elon Musk had provided directional guidance of sequentially flat deliveries for the quarter but the situation in China worsened subsequently, only improving in early June.â
The new estimate comes in well below the Wall Street consensus of 270k units, a figure already reeled in significantly after similar cuts at Morgan Stanley, Mizuho, and more. Based upon the lower volumes, Rosner also slashed his revenue expectation to $15.5B from $19.2B and slashed EPS estimates from $2.71 to $1.66.
Rosner was quick to clarify that he remains bullish on the long term prospects for Tesla, reiterating his âBuyâ rating on shares and that he and his team âremain impressedâ with the companyâs pricing power and operational execution.
Still, the near term headwinds prompted him to pare his price target on shares by 10%, from $1250 to $1125 ahead of Fridayâs anticipated delivery update.
Shares of the Austin-based automaker fell over 4% on Tuesday.
Read more on similar actions taken by Mizuho on numerous EV manufacturers.