Insights

Why Tesla Stock Stalled Today

What happened

Tesla (NASDAQ: TSLA) is expected to publish its second-quarter delivery figures any day now, and investors are getting nervous about those numbers. This skittishness was reflected in the stock’s performance on Thursday; it closed the day nearly 2% lower, against the under 1% decline of the S&P 500 index.

So what

The second quarter wasn’t easy on a great many companies, and Tesla wasn’t spared that unease. The hardest blow came from across the Pacific where coronavirus restrictions and lockdowns hobbled production at the company’s Shanghai gigafactory. Meanwhile, Tesla’s manufacturing in general was affected by the supply chain difficulties currently plaguing industrial companies throughout the world.

Recently, a clutch of analysts have revised their estimates for Tesla deliveries in the quarter. It’s a common belief among that crowd that the electric vehicle (EV) maker’s numbers will be notably lower than the highs posted in trailing quarters.

One of those analysts is Wedbush’s Daniel Ives, who wrote in a new research note on Thursday that he anticipates a figure of roughly 250,000 units. That’s on the low side of the general range of estimates which, according to a recent FactSet poll cited by Investors Business Daily, reach up to 272,000.

Now what

Even the upper part of that range wouldn’t come close to the record Tesla notched in Q1, which was just over 310,000. More discouragingly, if those muted expectations are met, Q2 would represent the first sequential decline for the EV king since the early stages of the coronavirus pandemic.

That said, there is still plenty of bullish sentiment on Tesla’s near-term future among both investors and analysts. In Ives’ new note, the Wedbush prognosticator wrote hopefully that “While June delivery numbers will be ugly and nothing to write home about the Street will be focused on the trajectory for 2H and the overall demand picture staying firm.”

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info