“The current Shanghai lockdowns have been an epic disaster so far in the June quarter and we expect Tesla to see modest delivery softness this quarter with a slower growth trajectory in the key China region” into H2, Wedbush said.
In addition, regarding Tesla Chief Executive Elon Musk's bid to buy Twitter (TWTR), the analysts said the “Twitter circus show has been a black eye for Musk and Tesla's stock” and has put off many investors.
For Q2, the analysts expect total Tesla deliveries to be 277,000, compared with their original estimate of 297,000, and for revenue to be $15.9 billion, down from their previous forecast of $16.9 billion. They also lowered their pro-forma earnings forecast to $2.10, down from $2.80 per share. For full-year 2022, Wedbush expects earnings of $11.46 per share on revenue of $81 billion, down from their previous estimate of $12.62 per share on revenue of $87.1 billion.
The firm maintained its outperform rating on the stock, but lowered its price target to $1,000 from $1,400.
Shares of Tesla are down nearly 2% in recent early Thursday premarket activity.
Price: 695.89, Change: -13.92, Percent Change: -1.96
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