Tesla (TSLA) gets optimistic outlook from Wall St as Q2’s final month approaches

Tesla (NASDAQ: TSLA) recently received an optimistic outlook from Goldman Sachs analysts, with the Wall St. firm maintaining a “Buy” rating on the electric car maker.

The updated price target on the company was posted by Goldman Sachs analyst Mark Delaney, who raised TSLA stock’s target from $864 to $925 per share, AnalystRatings reported.

TSLA shares closed at $805.81 yesterday.

It’s not just Goldman Sachs which has given Tesla an optimistic outlook. JMP Securities analyst Joseph Osha also maintained one of the highest price targets of any analyst for TSLA stock. Currently, he rates TSLA with a “Buy,” with a target set at $1,001 per share.

The company has a positive outlook heading into the near future with both of its production facilities currently operating and producing electric cars. After a lengthy shutdown of the Fremont factory in Northern California, the company officially resumed production on Monday, May 18.

Looking into the future for Tesla’s second-quarter performance, analysts seem skeptical that the automaker will be able to turn a profit once again due to the prolonged shutdown of the company’s Fremont production plant. Bernstein analyst Toni Sacconaghi, for one, stated that Q2 “will be tough” on Tesla, but he still believes the company can deliver about 70,000 vehicles over the quarter.

Bank of America Securities analysts said that investors should be prepared for a performance that is not as impressive as the first quarter. The company believes Tesla will have a tough task in restarting production measures while also ramping the manufacturing of new models.

Results “will likely prove toughest with production restarts/ramps that continue to be pushed out, which may disproportionately hit (Tesla) by derailing its ongoing capacity/production expansion across its plants (Model Y in Fremont, Model 3 in Shanghai, Giga Berlin),” BoA stated.

Even though Tesla managed to deliver 88,400 vehicles in Q1, which beat analyst expectations by 8,400 cars in total, the company had to navigate through shutdowns of both its US and China plants due to the coronavirus pandemic.

Tesla’s Q1 2020 was its most successful opening quarter of a fiscal year as a company, but numbers were still lower than they could have been due to the pandemic’s adverse effects. Tesla was ramping the Model Y and had just come off of its most productive quarter in Q4 2019, with 112,000 deliveries completed.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.