Here's what every major analyst said about Tesla's first quarter earnings

Published Tue, Apr 27 20218:06 AM EDTUpdated Tue, Apr 27 202110:28 AM EDT

Jesse Pound @/in/jesse-pound @jesserpound

Tesla added a new wrinkle to its quarterly earnings report, drawing another battle line for analysts who cover the closely followed electric vehicle stock. The company on Monday beat expectations on the top and bottom lines for the first quarter , thanks in part to a major boost from sales of bitcoin . The quarter's combination of record vehicle deliveries with profits largely dependent on a volatile cryptocurrency and regulatory credits did little to settle the debate around the stock. Opinions about Tesla vary widely across Wall Street, leading to different interpretations of the company's financial results. Here's what major analysts had to say about the report. Citi analyst Itay Michaeli, who has a sell rating on the stock, said the results were disappointing for Tesla but wouldn't cause a change of heart for analysts and their respective opinions. "Net-net, the initial after-hours stock reaction is understandably negative as Tesla's clean Q1 results were below consensus and are likely be viewed as underwhelming, but we don't think the quarter changes the LT bull/bear debate," the Citi note said. Piper Sandler's Alexander Potter, who has an overweight rating on the stock, said the report and earnings call were light on details about longer-term parts of the bull case, such as full self-driving and an expanded battery business. "In today's earnings call, Tesla didn't shed new light on any of these topics. Instead, management mostly opted to reiterate previously stated timelines. ... We still regard TSLA as a core holding, and our price target is unchanged at $1,200, but Q1 offered relatively few 'slam dunk' data points," the Piper Sandler note said. However, one bearish analyst said that the company's foray into bitcoin may turn into a positive takeaway from the quarter in the days ahead. "While the headline beat was traded off, perhaps the market will appreciate the new Bitcoin earnings more than the after-hours price might indicate," said Barclays' Brian Johnson, who has an underweight rating on the stock. Shares were down 4% in morning trading Tuesday. Here's what some other analysts said about Tesla's earnings report: JPMorgan- Underweight rating "We expect a negative reaction in Tesla shares after the firm on Monday reported a sizable EBIT miss relative to consensus expectations, which would have been even larger had it not been for higher than expected regulatory credit sales and a gain from the unexpected sale of a portion of the firm's position in Bitcoin." Evercore ISI- In line rating "In what primarily will be a year dominated by 'launch preparation' for '22 capacity volume/expansions TSLA executed a solidly inline core Q1. ... .The Biden EV/Infrastructure bill is by far the best near-term catalyst for TSLA assuming their exhausted 200k tax credit incentive cap is lifted allowing TSLA to benefit from an extra $7.5k of pricing or consumer elasticity again in the U.S." Bernstein- Underperform rating "We continue to struggle to justify TSLA's valuation. ... .While calling Tesla's stock direction near-term is a fool's game, we do believe that at some point valuation matters. We worry about any market rotation to value; Model 3 demand in 2021 as Model Y ramps; the impact of forthcoming EV competition to investor sentiment; & whether Tesla can roll out enough new models to sustain 50% growth for several more years." Goldman Sachs- Buy rating, price target to $860 from $835 "We are encouraged by auto gross margins of 22% particularly given the headwinds Tesla faced in the quarter from the Model S/X changeover and increased costs from shortages in the supply chain (e.g., in areas such as semiconductors and port capacity, per Tesla). We believe Tesla is well positioned to improve auto margins over time driven by scale (including from new factories in Shanghai, Berlin, and Austin), improved battery cost structure, and product cycles." RBC- Sector perform rating "Relatively uneventful quarter by Tesla standards. We were impressed by auto GMs and supply chain agility. But, opex higher, credits and Bitcoin sales helped EPS, and some timelines appear to be pushed a bit. Tweaking model but maintaining $725 price target." Morgan Stanley- Overweight rating "Overall, our view on Tesla is unchanged by the 1Q result and outlook. We still view Tesla as a 'must own' in Auto 2.0. For investors constructing an EV portfolio, at least, we see the risk of not owning the shares as exposing investors to greater risk of underperformance than by actually owning the shares. ... .However, we can confidently reiterate our OW rating on the name relative to the average stock under our coverage – even at a valuation of approximately 5x our 2025 revenue estimate." Canaccord- Buy rating, price target to $974 from $1,071 "While we acknowledge the rich multiple, we also believe TSLA maintains a meaningful market advantage, which we are trying to capture. Consistent with our recent upgrade, we believe Tesla is becoming The Brand in energy. In fact, the company discussed at length the need for renewable, distributed energy generation and storage, and its plan to permanently pair Solar Panel/Roof and Powerwall products for all future installations." Jefferies- Hold rating "Another mixed quarter, solid on gross margin but weakish on EBIT and FCF, both propped up by ZEV and Bitcoin. Most importantly in our view, auto gross margin exceeded 21% despite S/X change-over (cost and lost revenue) and industry supply chain challenges. We think Q1 numbers support current consensus in a year that is still mostly about execution rather than vision." Credit Suisse- Neutral rating "Yet at the same time, the bull narrative is intact – a crucial point, as the stock has been defined by a robust narrative. Tesla maintained all key outlook points for 2021, and importantly continues to expect deliveries from both Austin and Berlin to start in 2021. Our take – while the stock is likely to see weakness tomorrow on the data point, we believe a continued robust narrative will maintain strength for the stock, even in spite of a lofty valuation." Baird- Outperform rating "Tesla reported 1Q21 revenue that was marginally below consensus but gross margins and EPS that were slight above. Management served several optimistic points on the call including those on current demand, margins, autonomous, solar/energy storage, S/X refreshes, and new factories in Austin/Berlin." Mizuho- Buy rating "We adjust estimates, reiterate our Buy and $820 PT as we continue to see TSLA and NIO well positioned in a secular EV market as legacy OEMs struggle to balance portfolios between legacy combustion engine and EV." Bank of America- Neutral rating "It remains to be seen if TSLA can capitalize on their first-mover advantage and stay dominant in the long term. Nevertheless, we continue to believe that as long as the company can fund outsized growth (new model introductions, capacity installation, etc.) with little to no cost of capital, as it has over the past decade plus, its high stock price will be justified." Oppenheimer- Outperform rating, price target to $1,080 from $1,036 "We believe TSLA has the potential to be a transformational technology company and deliver outsized returns. We believe the company's execution on Model 3 and Y volumes in the medium term and cost reduction, largely from a battery perspective, are critical to realizing positive incremental operating margin and cash flow necessary to support sustainable profitability." Deutsche Bank- Buy rating "Tesla reported solid 1Q21 results, with better-than-expected automotive gross margin and operating cash flow, despite large supply chain headwinds and no production of Model S+X in the quarter. We believe this reflects robust execution and operational flexibility in a challenging industry environment, but also benefit from continued cost optimization and leadership, with Tesla COGS now down below $38k per vehicle, likely materially below most competing EV models."

Elon Musk, CEO of Tesla, stands on the construction site of the Tesla Gigafactory. In Grünheide near Berlin, September 3, 2020.

Patrick Pleul | picture alliance | Getty Images

Tesla added a new wrinkle to its quarterly earnings report, drawing another battle line for analysts who cover the closely followed electric vehicle stock.

The company on Monday beat expectations on the top and bottom lines for the first quarter, thanks in part to a major boost from sales of bitcoin. The quarter's combination of record vehicle deliveries with profits largely dependent on a volatile cryptocurrency and regulatory credits did little to settle the debate around the stock.

Opinions about Tesla vary widely across Wall Street, leading to different interpretations of the company's financial results. Here's what major analysts had to say about the report.