Tesla shares: These numbers will also cause discussion

Tesla surprised the stock market yesterday with better than expected numbers. Overall, Tesla’s quarterly automotive revenue rose from $ 5.4 billion to $ 7.6 billion. On an EBITDA basis, the quarterly profit climbed from $ 1.1 billion to $ 1.8 billion. The bottom line is that Tesla posted a profit increase from $ 143 million to $ 331 million for the third quarter of 2020. Investments were more than $ 1 billion compared to $ 385 million in the same period last year. The net cash inflow from operating activities approximately tripled to $ 2.4 billion.

Tesla’s share price does not appear to be undervalued, however, and the quarterly balance sheet will cause discussions. There is also criticism of how Tesla makes profits – it is not the core business, electric car construction, that makes a quarterly profit, but the repeated sale of emission certificates. It took 397 million dollars compared to 134 million dollars in the same quarter last year. The cash flow development, however, is brought into play by “defenders”.

In the meantime, the first analysts have agreed Tesla’s quarterly figures. There are upgrades after the better than expected numbers: JMP Securities now rates the Tesla share with “Outperform” after previously “Market Perform” and a price target of 516 dollars. Also from Baird is now an “Outperform” after previously “Neutral” with a price target of 488 dollars. For comparison: on the NASDAQ, the Tesla share ended yesterday’s trading at $ 422.64, slightly up. Current pre-market indications from the USA, which are still of limited informative value, are, however, almost 5 percent higher and fluctuate around 443 dollars.

In contrast, Goldman Sachs, despite the better-than-expected Tesla quarterly figures, remains at the previous “neutral” with a target price of 450 dollars. The stock experts also positively mention that Tesla has confirmed its delivery target for 2020 with 0.5 million vehicles. RBC is still skeptical about Tesla’s share price and remains at “underperform”, but raises the price target from 290 euros to 339 euros. That is still almost 10 percent below current Tesla prices in European retail. The experts justify their reluctance with the continued high valuation of Tesla’s shares – despite raised forecasts.

Barclays even expects Tesla shares to plummet, and names $ 125 as the target price for the electric car manufacturer’s share. It remains the “underweight” for the stock from the equity analysts. Although the profitability of the group is solid, Barclays asks whether this can justify the valuation level. In addition, one sees threats to Tesla’s competitive advantage due to developments in Europe and China.

At a glance – chart and news: Tesla Motors


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