Credit Suisse adjusts Tesla’s Q2 deliveries guidance to 240-250k units from 295k

Written by Cláudio Afonso | | LinkedIn | Twitter

Credit Suisse analyst Dan Levy reiterated on Friday the firm’s Outperform rating and $1,125 price target on Tesla shares. Levy lowered the deliveries guidance for the second quarter from 295k units to 240-250k due to the shutdown of Tesla’s GigaFactory in Shanghai.

“Update on delivery expectations; updating CS view: During our visit, we discussed how 2Q has played out to date in China. Mgmt noted that Shanghai saw a full month of shutdowns, the majority coming in April. Since the 1Q call, Shanghai has operated with one shift, and mgmt notes that for Tesla to produce at two shifts with meaningful volume, Tesla’s China suppliers will also need to resume production,” the analyst stated.

“Given this slower-than-anticipated restart, we see 2Q22 deliveries tracking towards ~240-250k units vs. our estimate of 295k units, led by reduced production from Shanghai, though recovery will likely be swift once it begins,” the analyst concluded.

On Thursday, Jefferies analyst Philippe Houchois lowered the firm’s price target on Tesla shares to $1,050 (from $1,250) while maintaining a Buy rating. The analyst expects the U.S. manufacturer to deliver 257k vehicles in the second quarter and a total of 1.415 million in 2022, a 52% annual growth.

According to Shanghai Securities Journal, Tesla is now hiring a large number of personnel for its R&D and Innovation Center department located in Lingang, Shanghai. Based on what relevant Tesla sources told, Tesla Shanghai R&D and Innovation Center will also carry out more original development work around vehicles, charging equipment and energy products in the future.

Written by Cláudio Afonso | | LinkedIn | Twitter