Tesla Motors, Inc. (NASDAQ: TSLA), Fiat Chrysler SpA (NYSE: FCAU) – Tesla analyst sees ‘top home run’ in Q2 deliveries despite year-over-year declines

Tesla Inc (NASDAQ: TSLA) was unable to maintain its 2019 performance level despite new contributions from its Shanghai factory and Model Y. The automaker’s second-quarter deliveries fell 4.8% year-over-year to around of 90,650 units. It should be noted that the street expected only 68,380.

“In our opinion, a delivery number of 90,000 in this COVID blocking environment is an eyedropper and the bulls will run with this as a possible paradigm shift going forward,” Wedbush analyst Daniel Ives said in a note.

Loup Ventures noted that peer-to-peer deliveries fell significantly more dramatically: General Motors Company (NYSE: GM) fell 34%, Toyota Motor Corp (NYSE: TM) 35% and Fiat Chrysler Automobiles NV (NYSE: FCAU) 39%, and Tesla numbers actually increased quarter-over-quarter despite 21 more days of factory shutdowns.

“The June quarter deliveries are further evidence that Tesla has the auto industry underpinned,” Loup Ventures managing partner Gene Munster said in a note.

Analysts on Tesla’s global performance

Maintaining a Neutral rating on Tesla with a price target of $ 1,250, Wedbush called the quarterly performance a “major home run” and sharpened its strength in China.

“Up to this point, strong demand for China’s Model 3 remains a bright beam of light (and we believe it was an outstanding clear in Q2) for Tesla in a dark global macro and appears to be at a run rate to reach 100,000. first-year out-of-doors unit deliveries for Giga 3, which is driving some strength for Tesla, as well as Model Y deliveries that are also starting to increase, “Ives said.

International sales generated a large portion of Tesla’s deliveries.

According to Tesla Bear GLJ Research’s math, Fremont deliveries decreased approximately 37% year-over-year, and Model S and X deliveries fell 40%, though each exceeded consensus expectations. Founder Gordon Johnson emphasized the quarter’s implications for achieving the annual guide.

“Note that TSLA drastically reduced the price of their cars multiple times in 2Q20, and this means they have to ship 160,700 cars in both 3Q20 and 4Q20 to reach their 2020K-end guidance of 500K cars delivered.” The analyst said in a note.

Tesla production

Tesla production fell from 102,672 in the first quarter to 82,272 in the second. Models 3 and Y made up 75,946 units compared to 87,282 in the previous quarter, while S and X comprised 6,326 compared to the previous figure of 15,390.

Wedbush said the turnout was “impressive given Fremont’s close / showdown during the quarter.”

Earning implications for Tesla

The figures may help alleviate bears’ lingering concerns about Tesla’s sustainability, said Munster of Loup Venture.

“Based on newly reported delivery numbers in the June quarter, we expect the company to report better-than-expected earnings, potentially close to a gain despite the close, and favorable details on continued factory-driven profitability trends. Shanghai and Model Y “.

TSLA Price Action

Tesla shares rose 7.36% to $ 1,202.09 at press time on Thursday.

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Photo courtesy of Tesla.