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Analysts wrote in a note, “We consider TSLA a core holding and continue to like it as a Best Pick for the year. With that said, we think sentiment headed into the quarter is negative and stock likely trades down into the quarter which should be low point for gross margins. Although we are cautious into the print, we think it will be a “derisking” event and buyers are likely to step in following results. We recommend waiting closer to results to accumulate additional shares. Deliveries should be released by July 3.”
TSLA has appreciated ~20.1% since May 31 and sentiment headed into results is cautious to negative. Analysts also believe that, even with in-line deliveries, attention will turn immediately to 2Q results which they believe will post the weakest gross margin of the year.
Analysts see the company could face pressure up to the 2Q print; however, they speculate that this will be a derisking event for buyers to step in after results.
Baird estimates that Tesla will report 423.1K deliveries in the quarter compared to the consensus estimate of 445K.
Shares of TSLA are up 0.69% in pre-market trading on Tuesday.
