{"id":48718,"date":"2023-05-02T09:03:22","date_gmt":"2023-05-02T13:03:22","guid":{"rendered":"https:\/\/autosector.com\/?p=48718"},"modified":"2023-05-02T09:03:22","modified_gmt":"2023-05-02T13:03:22","slug":"tesla-q1-2023-earnings-wall-streets-take","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=48718","title":{"rendered":"What Was Wall Street’s Take On Tesla’s Q1 2023 Earnings?"},"content":{"rendered":"

This article comes to us courtesy of\u00a0EVANNEX<\/a>, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at\u00a0InsideEVs<\/a>, nor have we been paid by\u00a0EVANNEX\u00a0to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!<\/em><\/p>\n

Posted on<\/span>\u00a0EVANNEX on May 01, 2023,\u00a0by<\/span>\u00a0Peter McGuthrie<\/p>\n

Tesla\u2019s Q1 earnings call<\/a>\u00a0saw mixed responses from Wall Street, largely due to how its price cuts affected its margins during the quarter. Still, CEO Elon Musk<\/a>\u2019s promise for a future of significant profitability based on its Full Self-Driving system is keeping some analysts bullish, despite uncertain economic conditions.<\/p>\n

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Above: Tesla’s Model S and 3 sedans (Image:\u00a0Casey Murphy<\/a>\u00a0\/ EVANNEX).<\/em><\/p>\n

During the earnings call, Musk pointed to Tesla<\/a>\u2019s FSD beta as having the potential to generate significant profits in the future, as detailed in a recent report from\u00a0Barron\u2019s<\/em><\/a>.\u00a0<\/em>Some analysts were disappointed with Tesla\u2019s gross profit margins, which landed beneath Wall Street expectations of 21 percent at just 19 percent.<\/p>\n

Musk defended the margins, saying that the company would be well-positioned with a high volume of its cars on the road, once getting past the current state of macroeconomic uncertainty.<\/p>\n

\u201cWe\u2019ve taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin,\u201d Musk said. \u201cHowever, we expect our vehicles, over time, will be able to generate significant profit through autonomy.\u201d<\/p>\n

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“We\u2019re making a car that, if autonomy pans out, and we think it will, where that asset will be worth a hell of a lot more in the future than it is now. It is technically possible to sell it at zero profit, but still have the net present value of future cash flows associated with that asset [be] very significant.”<\/p>\n<\/blockquote>\n

Baird analyst Ben Kallow retained a $252 price target and a Buy rating on Tesla following the call, emphasizing positive hopes for the company in both the near and long terms.<\/p>\n

\u201cMusk noted that the most attractive near-term project is to upgrade the existing fleet to include FSD capabilities, which would tremendously increase the vehicles\u2019 asset value,\u201d Kallo wrote in a recent note. \u201cOther longer-term projects include the Dojo supercomputer, Optimus bot, and residential heat pumps.\u201d<\/p>\n

Citi analyst Itay Michaeli currently has a Hold rating on Tesla, lowering his price target to $175 from $192 after the earnings call. Michaeli thinks that Musk\u2019s plan for autonomy revenue may have some weight, especially if Tesla can demonstrate continued evidence of the FSD beta improving.<\/p>\n

\u201cTesla\u2019s rationale for pursuing price cuts rested on lifetime vehicle revenue, a view that\u2019s fully aligned with our own industry thesis around [autonomous vehicles] being the biggest value unlock of this [industry] race,\u201d wrote Michaeli. \u201cStill, for this to anchor the Tesla investment thesis, we\u2019d need to see more evidence of [Tesla\u2019s] Full Self-Driving progress given Tesla\u2019s unique approach versus industry.\u201d<\/p>\n

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Currently, 52 percent of analysts that cover\u00a0Tesla<\/a>\u00a0have a Buy rating on the stock, with the average analyst price target landing at $198 per share. At the time of writing, Tesla\u2019s shares are trading at $156.02, down $4.79 (-2.98 percent) during market open.<\/p>\n

<\/svg><\/span>OTHER WALL STREET ANALYSTS ON TESLA\u2019S Q1 2023 EARNINGS
<\/strong><\/h3>\n

George Gianarikas, Canaccord Genuity<\/strong>\u00a0– Buy; price target $257<\/p>\n

Dan Ives, Wedbush<\/strong>\u00a0– Buy; price target $215<\/p>\n

Jeffrey Osborne, TD Cowen<\/strong>\u00a0– Buy; price target $150<\/p>\n

Source:\u00a0Barron\u2019s<\/em><\/a><\/p>\n

===<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

This article comes to us courtesy of\u00a0EVANNEX, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at\u00a0InsideEVs, nor have we been paid by\u00a0EVANNEX\u00a0to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of […]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-48718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/48718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48718"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/48718\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48718"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}