According to TESLARATI, Swiss credit analyst Dan Levy has made a prediction regarding new car deliveries for Tesla in the second quarter of 2020.
Tesla is expected to release its Q2 financial report in early July, and the Swiss credit analyst predicts new car deliveries to be around 90,000-100,000 units.
In his report to investors, the analyst wrote: “Recent reports suggest that Tesla had very strong sales in June, with deliveries likely in the range of 90,000 to 100,000 units for the second quarter. While expectations have risen significantly, we believe that as long as Tesla reports within this range, it will be a positive catalyst for the stock.”
Levy predicts that Tesla will deliver about 35,000 cars from Fremont, 31,000 from the Shanghai factory, and 25,000 from global inventory.
Tesla’s production in Q2 is estimated to be between 76,000 and 88,000 units, and the company expects profitability to slow compared to previous weeks. Levy’s current rating on Tesla stock is “hold,” with a target price of $700.
On June 30, according to foreign media reports, Musk sent an email to all Tesla employees urging them to help the company maintain balance in Q2.
In the email, Musk urged Tesla employees to “go all out” in production and delivery of cars, and told them that “maintaining balance looks super tight.” It is not clear at this time whether “maintaining balance” refers to Tesla’s profit margin, selling a specific number of cars this quarter, or holding production and sales steady compared to previous quarters.
In Q1 2020, Tesla abandoned previous expectations and stated that there is “capacity” to support the target of delivering 500,000 cars in 2020. However, after the outbreak of the COVID-19 pandemic, Tesla’s US car factories and suppliers remain uncertain about how quickly they can increase production.
At that time, Tesla also stated that recent profit expectations would “remain unchanged,” which could affect its hope for achieving its first annual profit.
Tesla is vying to be included in the S&P 500 index, with the requirement being that Tesla must achieve profitability for at least four consecutive quarters, and it has already achieved profitability in the past three quarters.
However, Q2 2020 in the context of the COVID-19 outbreak is unclear, hence Musk’s call for all employees to go all-out in production and delivery of cars.
Tesla stated that in Q1 2020, it delivered about 88,400 cars worldwide, including 76,200 Model 3 and Model Y crossover SUVs, as well as 12,200 older and more expensive Model S and Model X cars. Tesla produced about 14,000 more cars than it delivered in Q1, for a total of 102,672 cars produced.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.