Investor's Corner

Deutsche Bank weighs in on Tesla’s (TSLA) Q2 2021 deliveries and earnings

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Deutsche Bank firmly maintained its $900 price target on Tesla and gave TSLA stock an investment-grade BUY rating.

The investment bank adjusted its Q2 earnings and revenue estimates for Tesla, although its gross margin for the company remains at 23.5% or 26.5%, excluding regulatory credits. Deutsche Bank lowered Tesla’s earnings estimate to $0.97 per share from $1.07 per share.

Deutsche Bank lowered its delivery estimates for Tesla to reflect softer China volumes. But the investment bank still seems bullish on Tesla stock.

“We continue to believe Tesla’s target trajectory for its battery technology, capacity, and especially cost could help accelerate the world’s shift to electric vehicles and extend Tesla’s EV lead considerably,” noted analyst Emmanuel Rosner.

The investment bank estimates that Tesla delivered 200,000 units in Q2 this year, a little below Wall Street’s 201,000 estimate for the second quarter. Deutsche Bank trimmed down its delivery estimate from 207,000 units.

Other analysts who closely watching TSLA seem to expect the EV company to report no less than 200,000 deliveries. “We believe 200,000 is the line in the sand, and right now it’s biased upside given stronger Europe and China demand,” Wedbush analyst Dan Ives told Barron’s.

Tesla China sold a total of 25,845 vehicles in April, including 14,174 exports that were shipped to Europe. Compared to March, Tesla’s deliveries were down by 28% in April. However, March was the end of the first quarter when Tesla deliveries usually spike. Also, Giga Shanghai shut down the Model Y line in April to make way for upgrades.

In May, Giga Shanghai seemed to be up and running again. Tesla China sales rose 30%, with 21,936 units sold in the local market and 11,527 exported to foreign territories.

In the United States, Tesla seems to have sold out for Q2. Inside sources reported that Tesla is almost entirely sold out for Q3 already.

As of this writing, the Tesla Model 3’s estimated delivery time is 9-13 weeks for customers who order now. While the estimated delivery time for Model Y customers is September on Tesla’s configurator.

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Deutsche Bank weighs in on Tesla’s (TSLA) Q2 2021 deliveries and earnings
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