Wall Street Now Focusing on Tesla’s Second Half and Firm Demand: Wedbush
Just weeks after Tesla CEO Elon Musk warned of an upcoming recession in the U.S., also saying that Tesla had a tough quarter in Q2, one analyst is noting how important it will be for the automaker to hold onto high demand as it faces an economic downturn in the months ahead.
Tesla is preparing to face “dark economic storm clouds on the horizon,” though investors will focus on the back half of 2022 and a strongly maintained demand for the automaker’s EVs, said Wedbush Senior Equity Research Analyst Dan Ives this week in a note reported by Yahoo Finance.
Tesla’s Planned Production Upgrade at Giga Berlin Begins Next Week: Report https://t.co/sZkxYCiV8t
— TeslaNorth.com (@RealTeslaNorth) July 4, 2022
“The elephant in the room for Tesla (and the broader market) is with dark economic storm clouds on the horizon and Musk himself thinking recession risk is imminent, what does this mean for Tesla’s demand story going forward?” said Ives in the note to clients.
“In a nutshell, while June delivery numbers were ugly and nothing to write home about, the Street will be focused on the trajectory for the second half… and the overall demand picture staying firm.”
Tesla delivered 254,695 vehicles in the second quarter, after the automaker hit a record-breaking quarter with 310,048 vehicles delivered in Q1.
My preliminary 3Q delivs est is 372K which incorporates 18 days of GF3 downtime to upgrade both M-3 and M-Y lines (45K production lost) and a two week Berlin shutdown to upgrade the line and add a third shift (3K production lost). I expect 4Q $TSLA delivs of 465K.
— Gary Black (@garyblack00) July 4, 2022
Gary Black, the managing partner of The Future Fund, predicts Tesla will see Q4 deliveries of 465,000 cars, after upgrading its newest Gigafactories in Texas and Berlin, even after partial pausing of production for the upgrades.