Tesla Hits 3-Year Low Yes Shows Promise for Sales in 2019
Tesla’s performance was not great in the first quarter of 2019 but it seems like they might be making a comeback. Morgan Stanley and JPM Securities shared their opinions regarding Tesla shares news.
Over the last 6 months, Tesla stocks have been consistently bearish. Though there were some bullish signs at the beginning of Spring, the stocks kept on dropping. In the latest news, Tesla will most likely make a comeback.
JPM Securities analysts, Joseph Osha and Hilary Cauley shared a note with the investors. “More of Model 3s were registered in April and May than during all of the first quarter of the year,” due to which JPM estimates the increase of Model 3 sales for 2019.
There are expectations for Tesla to recover in the second quarter. The estimated sales volume creates hopes for a bullish sign. If you were considering buying Tesla shares, this might be the right time. The share price has dropped almost 40% since the beginning of the year.
Towards the end of December of 2018, the stocks almost reached the highest point in Tesla history, creating hope for shareholders. Today, Tesla shares are trading close to $200, which is quite below the company’s $300-plus share price seen at the beginning of 2019.
Tesla vs. Other Competitors
The month of May has not been the greatest for Tesla either. Tesla continues “to extend its lead vs. a still-smaller group of true [electric vehicle company] competitors,” shared Adam Jonas, Morgan Stanley Analyst. Jonas is widely popular on Wall Street for his thoughts and opinions on the vehicle industry, especially Tesla.
Morgan Stanley expects Tesla will deliver between 360,000 and 400,000 cars this year. This number is an increase of almost 45% to 65% compared to last year.
JPM, on the other hand, decreased the estimate for Tesla’s deliveries in 2019. They went down from 379,600 to 378,900. Though the change is small, it still makes a huge difference to the shareholders.
JPM explains their reasoning with the steady increase in the sales volume of the lower priced Model 3. At the same time, the more expensive Model S and Model X sales are declining. This means that the sales might increase, but due to a lower price, the profits will not be as great.
3-Year Lowest Point
According to Tesla share news, they made huge profits in the last decade. Tesla managed to increase their price from a mere $17 per share to almost $400 over 8 years. It is no surprise that so many traders have been investing in Tesla.
Though in the more recent years the stocks have been on the decline. The current stock price has hit the lowest in the last three years. For many shareholders, this is a horrible sign. The losses are greater than expected, but we are hoping to see Tesla recover.
Tesla increased total U.S. sales in May of 2019 by 73% compared to last year, according to data from Motor Intelligence. The competitor brands Audi, BMW, Jaguar, Chevrolet, and Nissan saw a 39% increase in sales.
Tesla needs some time to recover from its record losses. Though Tesla is expected to make a huge comeback, it might not be as great as we hope. Though some bullish signs are visible, it will not be easy for Tesla to recover from their lowest point in 3 years.
