Tesla’s share price is likely to start reversing in the fourth quarter after a big rise this year, as “defects in the growth story” begin to emerge, according to short-term stakes. Brian Johnson, an automotive analyst at Barclays, questioned Tesla’s prospects, even though the company’s second-quarter results beat market expectations. Johnson set Tesla’s target price at $300 in February.
Johnson said that while Tesla CEO Elon Musk has promised “industry-leading” profits, that is unlikely to happen, according to Wednesday’s earnings report.
“Obviously that’s not what he (Musk) is going to do, he’s trying to grow revenue,” Mr Johnson said. “
Excluding sales of Tesla Model 3 sedans made in China, “revenue at its Fremont plant would actually fall by 30 per cent,” Mr Johnson said.
Johnson said sales of Model Y, which began delivery in March, could affect model 3 sales.
Tesla’s shares have risen more than 280 percent so far this year, closing wednesday at $1,592.33. Johnson did not suggest that Tesla would reach its target price of $300 in the fourth quarter, but hinted that prices could fall.
Johnson also aimed at Tesla’s goal of delivering 500,000 vehicles this year. Johnson thinks Tesla is unlikely to achieve that goal. In the first half of the year, Tesla delivered 179,387 cars.
“He (Musk) did say it’s still the $500,000 target, but my goal is to finish the marathon in three hours, and I don’t think I’m going to make it,” Johnson said. “