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<p class="has-drop-cap">Bernstein analyst <a aria-label="Toni Sacconaghi kept (opens in a new tab)" href="https://www.cnbc.com/2023/10/19/tesla-story-broken-analysts-cut-their-price-targets-on-the-electric-car-maker-after-disappointing-third-quarter-earnings.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Toni Sacconaghi kept</a> his ‘underperform’ and $150 price target for Tesla’s stock (NASDAQ: $TSLA) following the disappointing <a aria-label="Q3 report (opens in a new tab)" href="https://digitalassets.tesla.com/tesla-contents/image/upload/IR/TSLA-Q3-2023-Update-3.pdf" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Q3 report</a> that showed shrinking profit margins and revenues. Tesla shares fell 7% in the premarket.&nbsp;</p>
<h3 id="tesla-s-q3-report-misses-expectations-across-the-board">Tesla’s Q3 Report Misses Expectations Across the Board</h3>
<p>Shares of Tesla are down 7% in premarket trading Thursday after the company’s Q3 results <a href="https://tokenist.com/a-tesla-death-cross-appears-as-investors-brace-for-q3-earnings/" rel="noopener noreferrer nofollow" class="deco-link">expectedly missed Wall Street estimates</a> across the board, partly due to the impact of the company’s <a href="https://tokenist.com/tesla-drops-after-price-cuts-more-pain-to-come/" rel="noopener noreferrer nofollow" class="deco-link">series of price cuts</a> throughout 2023.</p>
<p>The company reported adjusted earnings per share (EPS) of 66 cents, below the consensus projection of 73 cents. The automaker generated $23.35 billion in revenue in Q3, while analysts expected $24.1 billion. This was the first time Tesla delivered worse-than-expected EPS and revenue since its Q2 2019 report.&nbsp;</p>
<p>Tesla’s total operating margin – a key profitability measure closely watched by investors and analysts – came in at 7.6%, substantially lower than the 17.2% reported in Q3 2022. The automaker’s non-adjusted income was reported at $1.85 billion, while total gross profit plunged 22% from a year ago.&nbsp;</p>
<p>In the wake of the report, Bernstein analyst Toni Sacconaghi affirmed his underperform rating and $150 price target on the auto stock, which implies a nearly 40% downside from Wednesday’s closing price of $242.68.&nbsp;</p>
<blockquote class="wp-block-quote">
 <p>“5% auto revenue growth, collapsing margins and trading at 200x FCF — is the story broken? In many ways, Tesla is increasingly looking like a regular auto company.”&nbsp;</p> <cite>– the analyst said in a Thursday note. </cite>
</blockquote>
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<h3 id="wall-street-s-mixed-views-on-tesla">Wall Street’s Mixed Views on Tesla</h3>
<p>Saconnaghi’s description of Tesla as a “regular auto company” may be the analyst’s response to the carmaker’s previous attempts to <a href="https://tokenist.com/tsla-earnings-margins-expected-to-shrink-but-tech-narrative-dominates/" rel="noopener noreferrer nofollow" class="deco-link">establish itself as a technology business</a>.&nbsp;</p>
<p>Additionally, numerous analysts have raised concerns that TSLA has been an incredibly overvalued stock in the past months, and the numbers confirm it. The automaker’s price-to-earnings (P/E) – a valuation gauge that measures the current market of a stock relative to its earnings – currently stands at a whopping 68.9x, compared to Ford’s 11.4x and GM’s 4.1x.&nbsp;</p>
<p>Another cause for concern in Tesla’s Q3 earnings call is <a aria-label="Elon Musk’s commentary (opens in a new tab)" href="https://www.cnbc.com/2023/10/18/tesla-tsla-earnings-q3-2023.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Elon Musk’s commentary</a> on the upcoming Cybertruck. Notably, the billionaire said the long-awaited electric pickup truck is not expected to deliver significant positive cash flow in the 12-18-month period after its production begins.&nbsp;</p>
<p>Despite these headwinds, some analysts are not as bearish on the world’s biggest car manufacturer. Morgan Stanley’s Adam Jonas reduced his price target on TSLA from $400 to $380, which still implies a significant upside from the current market price. The strategist also has a top pick rating for the carmaker’s shares.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>Analysts’ views on Tesla’s future and fundamentals are mixed. What is your opinion on those? Let us know in the comments below. </strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/bernstein-keeps-tesla-pt-at-150-says-its-looking-like-a-regular-auto-company/">Bernstein Keeps Tesla PT at $150, Says it’s Looking Like a “Regular Auto Company”</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Bernstein Keeps Tesla PT at $150, Says it’s Looking Like a “Regular Auto Company”

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