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The Zacks Analyst Blog Highlights: Tesla, Ford, General Motors, Toyota and Volkswagen
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For Immediate Release
Chicago, IL – April 3, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Tesla (TSLA - Free Report) , Ford (F - Free Report) , General Motors (GM - Free Report) , Toyota (TM - Free Report) and Volkswagen .
Shares of Tesla plummeted over 7% on Monday morning, as part of a roughly 25% month-long decline. The electric car maker’s recent downturn has seen investors flee based on a slew of major concerns. Let’s take a look at four of the biggest.
Model 3 Production
Analysts at Jefferies believe that Tesla most likely fell short of its own first quarter Model 3 production goals. Tesla estimated that it would deliver 10,000 mass-market Model 3s in the period and eventually reach a production target of 2,500 vehicles per week.
There is no guarantee that Tesla will fall short of its own production projections. But Jefferies analyst Philippe Houchois wrote in a note to clients on Monday that it’s “about the magnitude of the miss.”
Accident
It has been more than a week since a Tesla crash sparked new worries about the company’s semi-autonomous autopilot system. Tesla recently released some of its initial findings on the deadly accident, which stated that the driver had time to put his hands back on the wheel and react to autopilot-related warnings.
However, the National Transportation Safety Board announced that it is “unhappy” that Tesla revealed some detailed information about the accident because the NTSB’s probe into the crash is ongoing.
Recall
In a move that might scare investors even more than an accident, Tesla announced late last week that it will voluntarily recall roughly 123,000 Model S sedans. The electric automaker issued the new recall after Tesla found that some of its bolts could corrode in cold weather and possibly lead to a power-steering failure.
The recall only impacted Model S vehicles built before April 2016, but Tesla’s latest recall marks the third time the Model S has been recalled since it first came to market. This latest recall also accounts for a substantial portion of total Tesla vehicles sold.
Tesla sold just 102,807 cars last year, and the more expensive Model S sedan and Model X SUV made up most of the sales.
Debt Concerns
Last week, Moody's downgraded Tesla's credit ratings to “negative” from “stable,” pointing directly to Tesla’s Model 3 production woes and worsening financial picture. This downgrade helped illuminate Tesla’s current debt figures.
The company has to cover $1.2 billion of debt that comes due by 2019. On top of that, Tesla’s 2025 bonds were yielding roughly 7.7% last week, while the notes sunk to a low of 86 cents on the dollar.
Tesla will clearly take on new debt in order to boost production of its mass-market Model 3, but it will likely come at far less favorable rates as Tesla continues to bleed cash.
The company’s inability to turn a profit is compounded by the fact that while Tesla and CEO Elon Musk overpromise and under deliver on production, the likes of Ford, General Motors, Toyota, Volkswagen and other proven automakers have entered the electric vehicle market.
Worse still, our current Zacks Consensus Estimates are calling for Tesla to post an adjusted loss of $7 per share in its current fiscal year, even as revenues are projected to climb by 60%.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Tesla, Ford, General Motors, Toyota and Volkswagen
For Immediate Release
Chicago, IL – April 3, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Tesla (TSLA - Free Report) , Ford (F - Free Report) , General Motors (GM - Free Report) , Toyota (TM - Free Report) and Volkswagen .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday’s Analyst Blog:
4 Key Reasons for Tesla’s Recent Selloff
Shares of Tesla plummeted over 7% on Monday morning, as part of a roughly 25% month-long decline. The electric car maker’s recent downturn has seen investors flee based on a slew of major concerns. Let’s take a look at four of the biggest.
Model 3 Production
Analysts at Jefferies believe that Tesla most likely fell short of its own first quarter Model 3 production goals. Tesla estimated that it would deliver 10,000 mass-market Model 3s in the period and eventually reach a production target of 2,500 vehicles per week.
There is no guarantee that Tesla will fall short of its own production projections. But Jefferies analyst Philippe Houchois wrote in a note to clients on Monday that it’s “about the magnitude of the miss.”
Accident
It has been more than a week since a Tesla crash sparked new worries about the company’s semi-autonomous autopilot system. Tesla recently released some of its initial findings on the deadly accident, which stated that the driver had time to put his hands back on the wheel and react to autopilot-related warnings.
However, the National Transportation Safety Board announced that it is “unhappy” that Tesla revealed some detailed information about the accident because the NTSB’s probe into the crash is ongoing.
Recall
In a move that might scare investors even more than an accident, Tesla announced late last week that it will voluntarily recall roughly 123,000 Model S sedans. The electric automaker issued the new recall after Tesla found that some of its bolts could corrode in cold weather and possibly lead to a power-steering failure.
The recall only impacted Model S vehicles built before April 2016, but Tesla’s latest recall marks the third time the Model S has been recalled since it first came to market. This latest recall also accounts for a substantial portion of total Tesla vehicles sold.
Tesla sold just 102,807 cars last year, and the more expensive Model S sedan and Model X SUV made up most of the sales.
Debt Concerns
Last week, Moody's downgraded Tesla's credit ratings to “negative” from “stable,” pointing directly to Tesla’s Model 3 production woes and worsening financial picture. This downgrade helped illuminate Tesla’s current debt figures.
The company has to cover $1.2 billion of debt that comes due by 2019. On top of that, Tesla’s 2025 bonds were yielding roughly 7.7% last week, while the notes sunk to a low of 86 cents on the dollar.
Tesla will clearly take on new debt in order to boost production of its mass-market Model 3, but it will likely come at far less favorable rates as Tesla continues to bleed cash.
The company’s inability to turn a profit is compounded by the fact that while Tesla and CEO Elon Musk overpromise and under deliver on production, the likes of Ford, General Motors, Toyota, Volkswagen and other proven automakers have entered the electric vehicle market.
Worse still, our current Zacks Consensus Estimates are calling for Tesla to post an adjusted loss of $7 per share in its current fiscal year, even as revenues are projected to climb by 60%.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.