Wall Street is still for the 4th of July, a break to celebrate the birth of Independence Day which, in Palo Alto, they hope will be good for Tesla, struggling in recent days with a real rain of sales.
On 3 July, at the end of trading on the Nasdaq, the title of the giant led by Elon Musk dropped 7,2%. In the last three sessions, the accumulated decline exceeded 12%, a percentage that brought the shares from $353,3 at the opening on June 29th to $310,8 at the closing on July 3rd.
A performance that seems to have definitively archived the ride achieved in the month of June despite the fact that Tesla has managed - albeit in extremis - to reach the much coveted production target of 5 Model 3s per week expected for a long time, but also the target relating to the Model S and Model X, for a total figure that reaches 7 vehicles per week.
"We are now truly an automotive companya”, had written the CEO to his employees in the e-mail in which he announced the conquest of the target. A "victory" that was not easy to achieve, for which the company even resorted to a huge tent, set up outside its main factory, in order to speed up the assembly line. But on the other hand, Musk's dream is ambitious and perhaps when in 2040 the car market will be dominated by the electric (forecast of Bloomberg's New Energy Outlook 2018), Tesla will take the lion's share.
In the meantime, however, are the numerous doubts that continue to grip the minds of analysts causing the declines in the Stock Exchange? The question that many Nasdaq investors ask themselves is: considering the enormous efforts made to achieve the goal and the "unconventional" measures put in place to achieve it, Will Tesla be able to maintain this production target over time? Based on the leaks over the past three days, the dominant thinking appears to be negative. Ryan Brinkman, an analyst at JP Morgan, also shares this opinion, confirming the "underweight" valuation and the target price of $180. Not only that, given that the increase in production has inevitably led to a parallel increase in costs, JP Morgan has raised its estimates of second quarter loss per share from $ 2,45 to $ 2,8.
