Analyst Says Tesla’s ‘Growth Story is Misunderstood’: How It Compares to Legacy Automakers

Tesla, Inc. TSLA June quarter shipments were up 27% year over year, in line with expectations but slower than the 68% growth seen in the first quarter. The slowdown was due to a 22-day shutdown of the company’s Giga Shanghai factory.

The numbers are wrong: Greater impact of production in China has been misunderstood, managing partner of Loup Fund Gene Munster said in a note.

“Tesla’s growth and competitive lead appears to be increasing,” the analyst said.

Prior to the shutdown, Tesla was producing about 60,000 to 70,000 cars per month in China, the analyst said, citing data from the China Passenger Car Association. CPCA estimates put Tesla’s production at 11,000 cars in April, 34,000 cars in May, totaling 45,000 units during the shutdown versus the 130,000 units it would normally have produced in those two months, a- he added.

Related Link: Tesla A ‘Cornerstone Holding’ – But Generally Bullish Analyst Cuts Price Target Again Anyway

The 22-day shutdowns slowed production by 85,000 units, the analyst said. If all the lost Chinese production had been converted into shipments, overall June shipments would have been 340,000 units, up 69% and essentially in line with the 68% shipment growth in the first quarter, he said. .

Tesla exceeds the Legacy pack: Tesla’s 69% adjusted shipment growth suggests it has outpaced the U.S. auto industry, Munster said. Production rates from eight other automakers showed their U.S. shipments fell 22% in the June quarter, he noted.

“Essentially, Tesla outperformed other automakers by 91% in June, compared to 75% in March and 90% in December 2021,” the analyst said.

Tesla closed Friday’s session up 2.54% at $752.29, according to Benzinga Pro data.

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