By
Svetlana Soroka
April 18th, 2024
On April 29, Tesla will release the first-quarter 2020 earnings. Analysts have already made their predictions, and now we have to wait to see whether Tesla has beat their expectations or not. Today TSLA stock is down in the pre-market.
On Friday, Tesla Inc (NASDAQ: TSLA) stock ended the session 1.16% up, at $753.89. After hours, it slightly plunged by 0.29% to $751.70 and is down 2.76% in the pre-market today. Currently, TSLA stock is at $733, but it is expected that it may rise by the opening time. In the last trading week, TSLA stock jumped by over 20%. Since the March 18 close, which was Tesla’s worst price of $361.22 this year, its stock has more than doubled.
Many believe that Tesla shares are worth buying now when the stock gains momentum. Besides, analysts are optimistic about the carmaker’s upcoming Q1 2020 report. They predict impressive results despite the coronavirus pandemic.
Tesla Q1 2020: What to Expect
On April 29, Tesla will release the first-quarter 2020 earnings. Analysts have already made their predictions, and now we have to wait to see whether Tesla has beat their expectations or not.
For example, FactSet has revealed that Wall Street expects Tesla’s deliveries to make up 91,694 vehicles for Q1 2020. This is 18% lower than 112,000 vehicles delivered by the car producer in Q4 2019. Further, FactSet has forecast a $6.19 billion revenue for Tesla, also down from the $7.38 billion in the fourth quarter of last year.
A famous Tesla enthusiast Gali Russell from HyperChange has made the following prediction:
“I’m conservatively expecting Tesla will deliver ~65,000 cars in Q1, growing about 5% year over year. This factors in the factory shutdown at the end of March and the macroeconomic crisis that has been unfolding. I’ve updated my full-year delivery estimates to just 350,000. I hope I’m being too negative, but am preparing for the worst.”
Credit Suisse analyst Dan Levy believes Tesla has delivered between 75,000 and 80,000 vehicles. Meanwhile, Daniel Ives from Wedbush estimates Tesla deliveries have totaled 82,000. Besides, he divided this figure into 14,000 Model S and X cars, 68,000 Model 3 and Model Y units.
As we see, analysts do not see eye to eye. Indeed, in the period considered, Tesla produced almost 103,000 vehicles and delivered about 88,400 vehicles. According to the company’s statement, it is the best first-quarter result Tesla has ever had. In addition, Tesla’s Shanghai factory has achieved record production levels, despite setbacks such as suspension of activity.
Is TSLA Stock a Buy?
As Tesla Q1 2020 results will definitely impress, investors may now rush to buy its shares. However, they should think thoroughly before buying the company’s stock just because of its momentum. It is currently much more expensive than a month ago, which means investors have already missed the most favorable price.
Besides, having a $139 billion market cap, Tesla will need to quadruple its sales to live up to its valuation. Probably, it is better for investors to wait until a better moment to put their money into Tesla stock, perhaps somewhere below $700.
And one more thing to remember. In the time of the pandemic, everything may happen, therefore, it is now extremely important to limit the risk of overpaying for stocks.