But in late June, he published a research paper saying that investors ignored the difficulties and risks of operating an automobile company and regarded Tesla as a high growth technology company, which led to its stock price being seriously overvalued and facing the risk of a substantial correction in the future.
Morgans statement is consistent with Goldman Sachs analyst mark Delaney. Despite a cautious neutral rating, Delaney believes Tesla has met the most important criteria investors seek with second quarter earnings and reiterating its goal of delivering 500000 electric vehicles this year. Positive free cash flow in the second quarter is also a surprise..
Meanwhile, Jeffrey Osborne, an analyst at Cowen, abandoned the low matching rating he had held since his initial coverage of Tesla in 2016, and raised it to hold, greatly raising its target share price from $300 to $1100. The main reasons are: higher profit margins, cost control, lower capital expenditure and faster production of factories and new models than expected.
Daniel ives, an analyst at wedbush, maintained Teslas neutral rating, but raised his target price from $1250 to $1800, believing that the second quarters earnings report was a wonderful home run that was far better than market expectations and hit skeptics. He reiterated that Chinas market growth was an important driving force for Teslas performance growth in the current quarter, worth $400 a share in a bull market scenario..
However, many analysts have noticed one of Teslas means to achieve quarterly profits: by selling carbon emission quotas to rival car companies, the companys regulatory credits revenue in the second quarter reached a record high of $428 million, nearly four times that of $111 million in the same period last year, and accounted for 7% of the total revenue of $6.04 billion.
Goldman Sachs pointed out that the main driver of Teslas profit growth in the second quarter was deferred revenue from the sale and release of regulatory credit points.. Pierre ferragu, an analyst at newstreet, also lowered its rating from buy to neutral with a target price of $1500. He believed that Teslas positive growth and the pace of gross margin increase would slow down, and short-term stock price catalyst is limited.. Toni sacconaghi, a senior technology analyst at abbernstein, said that while Teslas GAAP operating margin was 5% in the past 12 months, the figure would fall below 1% if regulatory credit integral income was excluded.
After the release of the good financial report, Barrys analyst Brian Johnson was even more upstream, warning that Tesla is unlikely to achieve the delivery target of 500000 vehicles by 2020, and its share price may start to reverse in the fourth quarter, with a target price of $300, which is more than 80% lower than Teslas closing price on Wednesday.
In addition, some analysts criticized Teslas soaring share price out of touch with reality. JPMorgan securities downgraded its shares ahead of Teslas results, saying there is no reasonable reason to argue that the valuation of stocks should be higher than the current level.. Adam Jonas, a bearish Morgan analyst, also said the power of hope is playing an increasingly important role in Teslas share price surge.
In an interview on Thursday, July 23, SEC chairman Jay Clayton said he was concerned that retail investors were allocating money to high-risk short-term trades, which had led to price spikes in some individual stocks. The SEC has issued guidance to brokers and investment advisers, recommending that retail investors should be given appropriate warnings about the risks of investment:
Short term trading is not a long-term investment. The former is much more risky than the latter. I am really worried and hope people will pay attention to this.
As of Wednesdays close, Tesla is up more than 280% so far this year, up nearly 523% in the past 12 months, and has rebounded 340% from its low in mid March. The market value of the company is nearly 300 billion US dollars, which is more than the total market value of the three traditional automobile giants in the United States.
Before midday trading on Thursday, Tesla opened high and went low. At one time, it rose more than 6% in the session. The stock price of the Nikkei high was close to $1690, and then the volatility turned down. It hit the daily low and forced down to the $1550 level in 45 minutes of opening, with the largest drop of 2.5%.
Source: Wall Street, editor in charge: Chen Hequn_ NB12679