Tesla estimates trimmed at Citi as Wall Street continues to temper targets
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Citiâs Itay Michaeli is the latest analyst to cut forecasts for Tesla (NASDAQ:TSLA) ahead of its second quarter delivery update.
In an action note on Tuesday evening, Michaeli updated his model to reflect disruptions in Shanghai and cost increases that should stand to squeeze margins. The company now expects total deliveries to reach 258.5K in the second quarter and 1.42M for the full year. Auto gross margin ex. credits are expected to reach 26.5% and 29.5% over those periods, respectively.
Michaeli lowered his 2022 EPS estimate by about 2% on the basis of these headwinds. Elsewhere, Michaeli lowered his operating expense estimates as the automaker continues to cut costs and reduce headcount. 
Citi is far from the first Wall Street firm to rein in estimates ahead of the deliveries update. A sampling of updates from major analysts are listed below.

Deutsche Bankâs new targets
Mizuhoâs reined-in estimates
Morgan Stanleyâs lowered expectations