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Wall Street reacts to missed deliveries in Q4


Tesla stock is starting to rally in 2023 after the automaker reported late deliveries in the fourth quarter.

Tesla delivered 405,278 vehicles globally during the quarter, falling short of analyst expectations of 420,760 as compiled by Bloomberg. During the quarter, Tesla produced 439,701 vehicles, a number that exceeded deliveries of 34,423 vehicles.

Tesla explained the growing disparity between delivered orders and units produced, stating that it “continues to move towards a more uniform regional mix of vehicles, which again leading to a further increase in the number of cars shipped at the end of the quarter.”

For the year, Tesla’s delivery numbers grew 22% to 1.31 million units, reaching an all-time high for the company, though not hitting the 50% growth the company had targeted. although last quarter the company hinted it might not hit that target. .

Still, Wall Street analysts are weighing in on the quarterly miss and some demand concerns.

“While Q4 soft results aren’t quite as shocking given China’s recent COVID developments, on-time deliveries (compared to bearish estimates and following recent price actions) are likely to add to the downside. increased concern about [near term] Citi analyst Itay Michaeli said in a note today that macro/competitive demand pressures come at a time when Tesla is adding significant capacity to existing products. “Until gross margin visibility improves (Q4 results Jan. 25), the stock may struggle to regain a meaningful position and the IRA principles of The US doesn’t seem to help by capping the $80k maximum price point just for the three-row Model Y variants.”

Wedbush’s Dan Ives, once a prominent Tesla bull, has turned sour in recent months about Tesla’s stock performance. He’s still worried after the Q4 delivery report.

“Tesla is held to a higher standard and a miss is a miss and the bulls are not going to crack the champagne on these numbers with the big question surrounding the 2023 demand/delivery picture,” he said. she said in a note this morning. “With Tesla not reporting Q4 earnings/guidelines until the end of January, debate will now rage on the Street around the 2023 Street outlook with delivery in the 35%-40% range for the year. 2023 because Musk & Co. need to come up with a more conservative plan than numbers to achieve in this tumultuous landscape and rip the band backing guidelines.

Tesla Founder, Elon Musk, Attends Offshore Northern Seas 2022 in Stavanger, Norway on Aug. 29, 2022. NTB/Carina Johansen via REUTERS ATTENTION EDITOR - THIS IMAGE SUPPLIES BY THIRD PARTY .  WE ARE OUTSIDE.  NO COMMERCIAL SALE OR EDITORIAL IN Norway.

Tesla Founder, Elon Musk, Attends Offshore Northern Seas 2022 in Stavanger, Norway on Aug. 29, 2022. NTB/Carina Johansen via REUTERS ATTENTION EDITOR – THIS IMAGE SUPPLIES BY THIRD PARTY . WE ARE OUTSIDE. NO COMMERCIAL SALE OR EDITORIAL IN Norway.

On the other hand, some analysts on Wall Street are impressed with what Tesla has done in the past despite many obstacles and focus on the future prospects of the company.

Deutsche Bank’s Emmanuel Rosner has reduced his price target from $270 to $250, but remains bullish on Tesla’s 2023 growth story. “We note that total production for the quarter came in at 439.7k units, representing a year-over-year growth of +20%, and both production and delivery hit all-time records,” he wrote. in a note today. “For the full year, Tesla delivered 1.3 million vehicles, up 40% year-on-year, well below the company’s long-term goal of 50% compound annual growth but we think it still represents a solid result. solid performance amid the Covid shutdowns, supply chain challenges, as well as increased macro weakness and a challenging consumer environment, particularly in China.”

CFRA’s Garrett Nelson reiterated his “Strong Buy” rating on the stock after the Q4 report, although shipping and manufacturing data were missed.

“After a rough year for the shares of electric vehicle makers like Tesla, Lucid and Rivian, we are bullish on TSLA in 2023 with potential share buybacks, lower priced versions of the shares. of the Model 3 and Model Y are now eligible for the $7,500 federal electric vehicle tax credit,” Nelson wrote today, clearly focusing on the road ahead for Tesla. “[We] saw its numbers hit new record highs as Austin and Berlin continued to grow and it achieved its first deliveries of the Cybertruck, which boasts the largest order backlog in the industry. for any upcoming electric vehicles.”

Speaking of future prospects, Tesla announced that it will host Investment Day 2023 in Austin, Texas, on March 1. The company said it will discuss its long-term, allotted expansion plans. capital and revealed its “3rd generation platform” during the conference. meeting.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and more Instagram.

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