Tesla (NASDAQ: TSLA) shares climbed as much as 11% Thursday morning, extending an overnight rally fueled by CEO Elon Musk’s upbeat outlook. All good news for investors. However, JP Morgan analyst Ryan Brinkman reported to Yahoo news, “Tesla’s softer trend and below-consensus adjusted automotive gross margin comes before the impact of large price reductions that will primarily be felt beginning in the first quarter,” Brinkman said in a new client note. “As such, we view margin trajectory negatively and expect that consensus margin expectations are likely to decline.”
Brinkman stated, Tesla shares are still rated Underweight (sell equivalent). The price objective of $120 for Tesla anticipates a 32% drop from present levels.
CNBC reported that Tesla reduced prices at the end of 2022 and so far in 2023, which tends to have spurred enthusiasm in buying a new Tesla. Musk provided a cautious but confident prediction for 2023 production. “If it’s a seamless year, without any significant supply chain delay or massive problem we have the capacity to produce 2 million cars this year. “I believe there would be interest in it as well,” Musk told an analyst.
Tesla’s fourth-quarter gross profit margin was 23.8%, falling short of expectations of 25.4%. The automotive gross profit margin was 25.9%, compared to analyst expectations of 28.4%.
Argus research reaffirms a buy rating on the stock as fourth-quarter earnings rise 40%.
Sierra Capital LLC raised its stake in Tesla, Inc. by 199.6% in the 3rd quarter, as seen in its most recent filing with the Securities & Exchange Commission.
Nicholas Hoffman & Company LLC. raised its holdings in shares of Tesla, Inc. by 200.8% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission
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