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TSLA volatile as Bull jumps while other analysts offer floor (updated)

TSLA stock is down again market trading this morning with the market.  We’re wrapping up the morning stock price news with another bull analyst turning bearish on delivery numbers, China tariff risk and trade war backlash and a floor number.

Update: And there’s the delivery numbers email. 

Once Tesla Bull Adam Jonas of Morgan Stanley is heading up the bears calling TSLA a distressed stock in a conference call with institutional investors. The hour-long discussion was made available on the web yesterday and is very bearish, to say the least.

TSLA Bull and Loup Ventures’ Gene Munster also capitulated that he doesn’t expect Tesla to reach its sales numbers in a Bloomberg interview though he is still bearing on the stock in the long term.

Loup Ventures co-founder Gene Munster wrote in a note that Tesla will probably miss its 2019 delivery target range as sales shrink in China amid a trade war between the two countries. The analyst cut his estimate for Tesla’s full-year global car sales by about 10% to 310,000 vehicles, versus the minimum 360,000-unit target the manufacturer set in March. The shares are poised for their seventh day of losses and are down 27% over the past month.

Bloomberg video follows:

Not everyone is bearish, at least at the current price and one trader thinks now is the time to get in based on TSLA price floor history and the “flush” to 180.

Look for a value buy, short-term trade opportunity in Tesla: Trader from CNBC.

“Right now, you’re getting a flush. This typically happens when there are super bearish calls out there on the Street. Let this thing flush,” he said Wednesday on CNBC’s “Trading Nation.” “There is going to be a value buy at some point.” Baruch pointed to a long-term trend line providing support around the $180 level. With the stock’s average directional index, an indicator that measures the power of stock trends, signaling more room for downside, Baruch advised letting the sell-off play out a bit longer before jumping in.

Oppenheimer’s Rusch also chimes in:

Electrek’s Take:

It is pretty crazy to watch the TSLA stock plummet (especially since disclosure: I own shares) based on a lot of things that don’t seem to be long term material to the overall health of the company. I guess the biggest factor is demand for Tesla’s Model 3 and if it is really gone or are shorts just hyping that possibility. I think China is a secondary factor but blocking markets and nationalism should only increase North American and European opportunities while eliminating the concern of Chinese electric vehicles entering the US market.

As for the car and demand, the Model 3 and Model S and X before it are amazing and no one is disputing that. CEO and Meme Lord Elon Musk has been “own-goaling” it lately on Twitter which seems to be spooking both institutional and retail investors. But that doesn’t change the fact that the cars that Tesla produces are the best in the world. Robo-taxi claims are of course intensely optimistic and unlikely to happen on timelines provided. But even if it takes 3 years longer than anticipated, Tesla is still poised to be a winner there.

Also, Tesla made a profit the last 2 Qs of 2018 and no one is even close to building Tesla-like cars with Tesla’s network of charging. Anecdotally, I’ve probably sold half the people I’ve given Model 3 drives to and I can’t be the only one. So I’m still bullish on Tesla’s delivery numbers being better than the stock price would indicate.

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Avatar for Seth Weintraub Seth Weintraub

Publisher and Editorial Director of the 9to5/Electrek sites. Tesla Model 3, X and Chevy Bolt owner…5 ebikes and counting