Tesla slips as 2 more Wall Street analysts cut targets into Q3 earnings

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Slowing China sales and accelerated price cuts will eat into Tesla's profit margins in the third quarter and beyond, prompting another round of target changes from Wall Street.

shares edged lower in pre-market trading following a pair of price target cuts from analysts on Wall Street ahead of the clean-energy carmaker's third quarter earnings next week.

China's Passenger Car Association said Sunday that Tesla sold just over 74,000 cars in the world's biggest market last month, an 11% slide compared to the same month last year and the 84,159 tally recorded in August. Houchois at Jefferies also cited eroding profit margins and weak fundamentals that"raise questions whether Tesla's earlier profit edge was structural or a timing difference", adding that some of company's other initiatives, including the leasing of full-self driving technology, aren't ready to offset a softness in the broader business.

Tesla will publish its third quarter earnings after the close of trading on October 18, with analysts looking for its overall bottom line to fall nearly 30% from last year, to 74 cents per share, even as revenues rise 12% to around $24.16 billion.

 

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