Tesla (NASDAQ:TSLA) stock is falling 9% and trending on social media after the electric vehicle (EV) maker announced that it had delivered fewer automobiles than expected last quarter. However, the company’s deliveries did jump 40% year-over-year to 405,278, setting an all-time quarterly record for TSLA.
Nevertheless, most Wall Street analysts reacted unfavorably to the news, although some remained upbeat on the outlook of TSLA and its shares.
The Q4 Delivery Data
Tesla’s deliveries were about 15,500, or 3.7%, short of analysts’ average estimate of 420,760. The automaker had previously set a target of increasing the number of EVs it provided to customers by 50% this year. And Tesla failed to meet analysts’ average Q4 estimate despite significantly lowering its prices in the U.S. and China last quarter.
TSLA Stock: Analysts’ Mixed Reactions
JPMorgan analyst Ryan Brinkman responded to the news by trimming his price target on TSLA to $125 from $150. Predicting that the company’s prices and margins would drop going forward, he kept a “sell” rating on the shares.
Stating that multiple macroeconomic factors, including China’s struggles with Covid and elevated interest rates, contributed to the miss, Citi’s Itay Michaeli was more bullish on Tesla’s outlook. The analyst kept a $176 price target and a “hold” rating on the shares.
And Goldman’s Mark Delaney trimmed his price target on TSLA stock to $205 from $235. But he kept a “buy” rating on the shares, citing Tesla’s ability to grow over the long term as EVs continue to proliferate.
Other Points to Consider
Musk’s erratic leadership of Twitter along with his recent, intense criticism of the U.S. government, have embroiled Tesla in a great deal of controversy. And it has made investors nervous.
Moreover, Tesla’s discounts and its Q4 delivery have raised concerns about the demand for its EVs dropping. Also worth considering is that, at their current prices, the automaker’s popular Model 3 and its five-seat Model Y SUV reportedly do not qualify for America’s new EV tax credits.
On a positive note, however, the Model Y was “the best-selling car in all of Europe in November,” research firm Recurrent Auto recently predicted that the EV could become the most popular vehicle of any type globally this year.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
