Tesla (TSLA) PT Cut to $270 at Nomura/Instinet as Profitability Metrics Underwhelm

Nomura/Instinet analyst, Christopher Eberle, cut the price target on Tesla (NASDAQ: TSLA) to $270.00 (from $300.00) after reporting mixed 2Q19 results with Deliveries exceeding initial expectations meaningfully but Profitability metrics underwhelming. Automotive gross margin declined sequentially and non-GAAP loss-per-share missed revised Street estimates by over ($0.75).

The analyst stated "Granted, Tesla faced a sequential headwind around regulatory credit sales, and net income suffered from a significant one-time restructuring charge during the quarter of $117mn. FCF was a bright spot as Tesla generated over $600mn during 2Q, though it came at the expense of invested capital as both R&D and capex were well below expectations. Overall, we doubt this quarter will inspire enough confidence to get the stock working". No change to the Neutral rating.

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