'So much for profits every quarter,' Barclays says after Tesla results
In a post-earnings research note titled "So much for profits every quarter," Barclays analyst Brian Johnson keeps an Underweight rating on Tesla shares with a $192 price target. The analyst says the Q1 results were in line with his "bearish estimates even excluding the one-time inventory write-down." While the loss was widely expected given the lower deliveries, Tesla's high fixed costs "were somewhat of an unpleasant surprise,' adds the analyst. Johnson, however, admits that it is unclear how a dilutive equity raise in the coming months impacts the share price short term given the "muted" reaction post earnings. He sees Tesla's cash constraints becoming more of a factor in Q2, "particularly if deliveries fall short of the guide." A further capital raise looks increasingly likely, says Johnson.