After a low Q1 report, Tesla’s sales key metric have bounced back. However, a consistently good performance is to be maintained by the company if the company’s stock price is to rise up to early 2019 levels.
Registration for Model 3 vehicles were higher during April–May compared to Q1, as per Hilary Cauley and Joseph Osha, analysts at JMP Securities. This led to an increase in estimated deliveries for Tesla’s Model 3 for 2019.
Estimates for Tesla’s Q1 were also updated, along with the forecasts for 2019. They said that Tesla’s volume of sales would increase significantly during Q2.However, shares are still trading at nearly $200, which is quite less than the $300 it traded for during the start of the year. Tesla continues to hold the lead over rival EV firms. Adam Jonas of Morgan Stanley, who is known for his grip over the EV and automobile industry, informed investors about this development.
Jonas’ note followed a warning where he said that no big tech firm would bail out Tesla’s woes. The stock has been down over 40% this current year. Jonas stated to his investors’ group that Tesla wasn’t writing a growth story; instead, it was putting out fires by restructuring at every turn.
However, sales grew by 73% when compared to 2018 in the US, as per Motor Intelligence. Other EV makers like Nissan, Chevrolet, Jaguar, BMW, Audi, saw their sales grow by 39%. Morgan Stanley noted that Tesla sold more than 260% higher than the number of cars sold by all its rivals put together in May as compared to 210% times higher last year.
Tesla kicked off the year with lower than expected delivery numbers. Musk explained that seasonality and logistical challenges were behind Tesla’s sales being hurt. Morgan Stanley predicted that Tesla would deliver 360,000–400,000 vehicles during the year. This would be around 45–65% more than last year’s sales. JMP, on the other hand, decreased estimates to 379,600, stating that it predicted higher volumes for Model 3 and declining Model X and Model S sales.
Morgan Stanley set Tesla’s price target at $193.60 whereas JMP has its Tesla price target at $347 per share.