With the ongoing movement to track the effect of Coronavirus on major businesses, we have come up with some findings on Tesla Stock. In this article, we’ll be looking at the effect of coronavirus on Tesla Stock using numbers and analysis as yardsticks.
Date Of Tesla Q1 Earnings
Tesla Inc (NASDAQ:TSLA) shares have been boosted by the recent Wall Street upgrade despite the Coronavirus pandemic that’s slowed down the demand for vehicles. In Q1, the company has been seen as having Tesla’s proxy for sales. Apart from that, its vehicle deliveries and the announcement of its production of new compact SUV (Model Y) in January have been a good one so far. As such, most of its investors are still focusing on these healthy Q1 vehicle deliveries before Tesla shuts down production. However, they’re also anticipating a fresh report of the coronavirus effect on Tesla stock.
They want to know the coronavirus effect on Tesla’s stock, including the production and sales of Model Y after shutdown in March. And while the company is yet to say a word about it, investors can only wait till April 29 to see the reports on its Q1 earnings.
While we await that, here’s what the numbers and analysts are saying about Tesla’s earnings so far.
Coronavirus Effect On Tesla Stock: What Are The Numbers Saying
According to FactSet estimates analysis, Tesla is about to report total revenue of $6.16 billion in Q1 sales, which is lower than the expected $6.6 billion in January. Also, down from $32 billion in February, the company is reporting $30.11 billion for its mid-April 2020 sales. Besides that, FactSet earning analysis also pointed out that Tesla will post a loss of 25 cents per share for Q1. Recall that the company reportedly adjusted its profits in the last two quarters. That has called for investors’ expectations for this year’s profit to $3.61 per share.
In the case of the Tesla stock movement, the company has been doing well so far. It has outperformed the S&P 500 index and that of Dow Jones. Presently, the Tesla stock is up more than 80%, with a loss of 10% for Dow Jones, and 2% for S&P. Also, the stock profited 25% in the Q1, except for April, and with losses of 23% and 20% for Dow and S&P, respectively. Apart from outperforming S&P and the Dow, it also outshined its Detroit peers, including Ford Motorand General Motors co. They have both fallen this year to 46% and 41%, respectively.
From the numbers above, we can see the coronavirus effect on Tesla stock so far. However, we’ll have to wait for the April 29th’s report to know the full effect.
What Analysts Are Saying
Here are some of the things Analysts are saying about the Coronavirus effect on Tesla stocks.
According to Toni Sacconaghi of Bernstein, with Tesla generating up to $2.3 billion capital in February, there’s no expectation that it’ll face any liquidity issues during this period. He has also retained his rating on Tesla shares, at the equivalent of a hold of $730 price target, stressing that the company will struggle to meet it.
According to Dan Levy of Credit Suisse, who believes Tesla has all it takes to transition to electric vehicles (EV), coronavirus will have a strong effect. It’ll also affect the company when balancing its long term shift to EV. He has also seen to upgrade his ratings of Tesla’s share to equivalent to hold with a $550 price target.
In terms of Tesla’s liquidity, the company had a $6.3 billion cash at the end of 2019. It also raised $2.3 billion capital in February. With all of these, it’ll be difficult for the company to get hit liquidity-wise. Although we are awaiting a favorable report of the coronavirus effect on Tesla’s stock sales, the above information is what we’ve gathered so far.