On October 31st, UBS believes that Tesla's disappointing Model 3 production issue is a sign of unease. UBS reiterated its "sell" rating on EV makers' stocks, and it is expected that the production of the Tesla Model 3 will continue. In the third quarter, Tesla delivered a total of 26,150 electric vehicles, including 220 Model 3, while FactSet’s estimates were 25,860 and 1,260, respectively. Two months before Tesla announced the data, the company had said that it would produce 1500 Model 3 cars in the quarter. UBS analyst Colin Langan said in his report to clients: “Model 3 will not only undermine the credibility of the future Model 3 target, but also increase short-term risks. We believe that the market should not ignore Tesla faces many fundamental challenges, including the profitability of the Model 3, fixed storage and solar business, and ultimately the need to raise cash." Tesla's share price fell slightly on Monday morning. The company's stock price has risen 50% so far this year, and as of last Friday, the S&P 500 index has risen by 15%. Rankan reaffirmed his target stock price forecast for Tesla shares for the next 12 months, still at $185, which is 42% lower than at Friday's close. In addition, Rankan also lowered his financial performance expectations for Tesla, the reason is still "Model 3 production growth slow." Rankan expects Tesla to lose a loss of $6.40 per share in 2017, after he predicted a loss of $5.30 and a loss of $3.3 in 2018, which is higher than the previous forecast of $1.6. He wrote: "As the Model 3's profitability is limited, infrastructure needs to expand, and Model Y capacity building (late 2019), we believe that Tesla will eventually need additional external financial support. As luxury car manufacturers will With the launch of competing products from 2018 to 2020, we will see increased demand for electric vehicles. Tesla did not immediately respond to requests for comment. (small)
