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Despite the anticipated miss, the investment bank acknowledges that expectations for Tesla’s release are low after weak deliveries during the quarter.
“We are forecasting Q1 EPS of $0.40, below consensus of $0.54,” said Wells Fargo. “Our below consensus EPS reflects the px cuts, lower deliveries, labor inflation & worse op leverage. We also lower our FY EPS by 20% to reflect the low Q1 delivery pace.”
While Wells Fargo also stated that the company’s poor fundamentals may be overshadowed on the first quarter call by Full Self-Driving “razzle-dazzle,” they believe that once the show is over, “fundamentals should matter again.”
“Despite poor deliveries & new Model 2 doubts, MTD [month-to-date] TSLA is only -2% (S&P -2%). Robotaxi has helped (now 8/8 reveal). With weak Q1 fundamentals, TSLA likely stays focused on FSD v12.3.3, based on a neural-nets & receiving positive reviews. We see hyping Robotaxi as risky,” added the bank.
