Tesla earnings 'strong,' but Wall Street 'not willing to bet on' latest robotaxi vehicle

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After Tesla reported record quarterly earnings, its stock rallied more than 7% Thursday. $TSLA has risen more than 41% in the past 12 months, compared with gains of around 7% for the S&P 500 index:

Tesla Inc.’s record quarterly earnings got praise from Wall Street, with the stock rallying more than 7% Thursday and analysts voicing just a few concerns about the ramp ahead for the EV maker’s newest factories.

Sacconaghi said he worried about “how Tesla will fulfill its growth plans of 50%+ annual growth with a limited product suite.” Margins are likely to come down as Tesla “evolves to be a truly mass market player and prevailing supply imbalances alleviate, we believe that margins may continue to improve through the remainder of the year,” Sacconaghi said.Jeffrey Osborne at Cowen said he remained “skeptical” about the robotaxi as well as “Full Self Driving,” the Tesla suite of advanced driver assistance systems the company said will have a full U.S.

“We commend the execution but are less enthusiastic about the stock at current valuation given likely at peak gross margin coupled with nothing new coming in 22,” Osborne said in his note.Emmanuel Rosner at Deutsche Bank raised his price target on Tesla shares to $1,250, which represents an upside of 20% over Thursday prices, and kept this rating on the stock at buy.

Limited production in the Shanghai factory resumed this week, put the problems are likely to cause a “headwind” of around 50,000 units in the current quarter, Dan Ives at Wedbush said in his note.

 

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Just wondering is a 211 P/E ratio good? I think Ford is 6. What does one bad quarter do to Tesla?

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