Wall Street firms are very positive on Tesla (NASDAQ: TSLA) after the company’s second-quarter earnings and the confidence outlook for the rest of the year and beyond. Although some analysts comment on the quality of the rhythm of EPS (regulatory credits), they have not reached significant reductions.
Wedbush: “While delivery numbers were known and much better than Street’s expectations given the current economic downturn, investors continue to focus on TSLA’s profitability picture. At this point, GAAP gross margin was strong at 21.0 % again beating Street’s expectations of 19.1% (with impressive automotive gross margins of 25.4% vs. 24.1% expectation); deputy EBITDA of $ 1.2 billion / 20.0% margin compared to last year’s number of $ 572 million / 9.0% margin speaks to a model business that continues to have significantly lower costs and more production efficiency even in the face of challenging global circumstances given COVID-19. “
Bank of America: “While TSLA’s Q2: 20 results were better than most expectations, we believe this is reflected more than the ~ 300% rise in TSLA YTD shares. In fact, we see the TSLA’s upward spiral of stocks as more driven by the stock itself than by fundamentals, as the stock increases, the cheaper financing comes to support massive growth, which is then rewarded by investors in the form of a Higher share price In our opinion, the current ~ $ 1,600 + The share price is separate from the current fundamentals, and rather reflects an opinion that TSLA could effectively access capital at no cost (equity) to finance the Future growth In our opinion, it is this self-fulfilling framework that seems to explain the extreme movements in TSLA shares, both upward (March-July 2020) and even downward (January-June 2019). pair ece overloaded, we reiterate our lower performance rating. “
Credit Suisse: “While we argue that a strong dose of regular credits reduces the quality of the pace versus the headline, it was nevertheless a solid result. More importantly, the growth narrative remains intact, crucial, as the market is becoming leaning heavily on growth and momentum. And while the valuation remains high, and any kind of materially negative data point could lead to a correction, we ultimately believe that there are enough positive catalysts ahead to sustain interest over the long term in action (S&P add, Battery Day, expandability). “
The Wall Street dashboard in Tesla shows 7 equivalent purchase ratings, 15 neutral equivalent ratings and 11 equivalent sales ratings.
Tesla’s shares are up to 2.44% Presale at $ 1,631.40.
