Tesla Q1 deliveries 'call hyper-growth into question,' says Barclays
Barclays analyst Brian Johnson says that despite price cutting efforts that he thought would boost Model 3 deliveries to 58,000 in Q1, deliveries came in below consensus and close to the bear estimates of 50,000. Further, the analyst sees "no evidence that the demand air pocket stabilizes" in Q2. In addition, Model S and X deliveries were a "big miss," which shows the impact of cannibalization and Tesla's decision to cut the 75kwh variant, which was likely done to boost higher end Model 3 sales, Johnson tells investors in a research note titled "Tesla 1Q deliveries call hyper-growth into question." The analyst sees the S and X miss as incrementally negative to Tesla's long-term average selling prices. While Tesla noting U.S. orders exceeded its ability to deliver may be viewed as positive by the bulls, it could also be a sign that excess orders in the U.S. were for the $35,000 base Model 3, which the company isn't producing yet in order to try and steer customers to the higher priced models, says Johnson. He keeps an Underweight rating on Tesla with a $192 price target.