Auto Industry / Electric Cars / Hybrid / EVs

TSLA Forecasting Q1 Loss After Cutting Jobs

Elon Musk set to fire ALL contractors

Analysts are changing their expectations for a TSLA profit in Q1 after Tesla Motors CEO, Elon Musk, warned of a “very difficult” road ahead for the electric car builder. Now, a lot of the Wall Street money has TSLA forecasting a Q1 loss.

This report comes after the January 18th announcement that Tesla would cut thousands of jobs. In that announcement, Elon Musk, himself, said the moves were part of an effort for the electric car maker to target a “tiny profit” in the first quarter, “with great difficulty, effort and some luck.”

The analyst consensus on Jan. 21 turned to a loss for the first quarter and stands at $2.5 million. Analysts on average were expecting Tesla to post a profit of $62.80 million on a reported basis as of Jan. 17, according to Refinitiv data. Gene Munster from Loup Ventures also concluded, in a note on Jan. 24, that “one potential rationale for the company guiding to a loss in March is the timing of vehicles in transit to Europe and Asia.” — Investing.com.

 

Regardless, it seems like Tesla is going to have a rough Q1. No less than six brokerage houses have cut their price targets for TSLA. Beyond that, two have already downgraded TSLA’s stock to “sell”, or equivalent, this month after Tesla’s fourth-quarter Model 3 deliveries fell short of analysts’ expectations.

Do you guys think another loss will hurt Tesla’s sales, or is this just another false foothold for Musk’s non-believers to desperately cling to as the electric car revolution blasts off into space? Let us know what you think of the market’s expectations for the Jan. 30 announcement– you might even think they’re wrong!– in the comments section at the bottom of the page.

 

Source | Images: Investing, via Flipboard.

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Jo Borrás
Jo Borras has been in the auto industry since 1997, and has been a contributor to various automotive and technology blogs for more than a decade. You can find him #resisting on Twitter, talking Swedish metal at his Volvo fansite, out cruising on two wheels, or chasing his kids around Oak Park, IL.