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Tesla Stock Downgraded After Deliveries Miss

JMP Securities downgraded TSLA to "market perform"

Oct 3, 2019 at 10:08 AM
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As predicted by Cowen earlier this week, Tesla Inc (NASDAQ:TSLA) said it hit record production of 96,155 vehicles in the third quarter. However, the company also said it delivered 97,000 vehicles in the three-month period -- just below Wall Street's consensus estimate of 97,500 cars, and well below the company's target of 100,000 autos. As a result, TSLA stock is down 5.2% at $230.50, bringing its year-to-date deficit to 31%.

Analysts have been quick to chime in, with JMP Securities downgrading Tesla stock to "market perform" from "market outperform," and questioning "whether demand growth for TSLA's cars might be leveling off." Elsewhere, Wedbush said this report is a positive for the automaker, but thinks fourth-quarter profitability could be difficult, and Canaccord Genuity is "encouraged that production woes appear to have abated," and reiterated its "buy" rating and $350 price target.

More broadly speaking, seven analysts maintained a "strong buy" rating on TSLA stock prior to today, compared to five that called the equity a "hold," and seven that deemed it a "sell" or "strong sell." The average 12-month price target, meanwhile, is docked at $252.91, an 8.8% premium to current trading levels.

Options traders, on the other hand, have been overwhelmingly upbeat toward TSLA. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 1.23 ranks in the 90th annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

 

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