Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bernstein spoke with investors following Tesla’s mixed Q4 report

Published 01/30/2023, 07:58 AM
Updated 01/30/2023, 08:07 AM
© Reuters.  Berenstein spoke with investors following Tesla’s (TSLA) mixed Q4 report

© Reuters. Berenstein spoke with investors following Tesla’s (TSLA) mixed Q4 report

By Michael Elkins

Bernstein reiterated an Underperform rating on Tesla (NASDAQ:TSLA) with a $150.00 price target after speaking with the company and several investors. Tesla has rallied dramatically despite reporting mixed results on Jan 25. Tesla missed margins significantly but provided reassuring guidance and commentary on demand and beat on EPS due to a lower-than-expected tax rate and FSD revenue recognition.

The bulls Bernstein spoke with believe that the longstanding Tesla bull thesis is intact, while the bears believe that the electric car maker’s near-term numbers are too high and that 2024 may not be any better. While some bears concede Tesla appears to have a current cost/margin advantage vs. peers, they argue that advantage will get competed away as others scale production.

Bernstein analysts wrote in a note “The past week has been a reminder of how difficult Tesla's stock is to call in the near term. On one hand, Tesla appears to have created demand elasticity, sentiment seems to be improving and the company's forthcoming analyst day on March 1 could be a further positive catalyst. That said, we believe consensus numbers have not been reset sufficiently and there is still further downside from Tesla's demand struggles. We also worry that the setup could be even more challenging in '24, when Tesla will target selling 2.5M-3M cars with largely its same lineup.”

Shares of TSLA are down 0.59% in premarket trading on Monday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.