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Why Tesla Stock Fell on Tuesday

By Daniel Sparks - Apr 27, 2021 at 11:43AM

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The electric-car maker didn't deliver the blowout quarter some investors were hoping for.

What happened

Shares of Tesla (TSLA 1.24%) took a hit on Tuesday. The stock slid as much as 4.5% but was down 3.9% as of 11:00 a.m. EDT.

The growth stock's decline followed the electric-car maker's first-quarter earnings release after market close on Monday. While the results were solid, they didn't feature the wow factor some analysts and investors had been hoping for.

Model 3 interior.

Model 3. Image source: Tesla.

So what

Tesla reported revenue of $10.4 billion, up 74% year over year. Non-GAAP (adjusted) earnings per share were $0.93, up 304% year over year. Analysts, on average, had been expecting revenue and adjusted earnings per share of $10.3 billion and $0.79, respectively. 

Analysts seemed largely unimpressed with the quarter. JPMorgan analyst Ryan Brinkman said earnings before interest and taxes were worse than expected, particularly when excluding the lift Tesla received from sales of regulatory credits. Jefferies analyst Philippe Houchois called the quarter's results "mixed," and he reaffirmed a $700 12-month price target. Wedbush analyst Daniel Ives, however, kept a $1,000 price target on the stock and said that Tesla's production capacity expansion plans and the company's rate of new vehicle orders are both promising.

Now what

For the full year, Tesla reiterated its previous prediction that vehicle deliveries will increase more than 50% year over year in 2021. In addition, management said Tesla is on track to start production and deliveries of vehicles from its new factories in Berlin and Texas later this year.

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Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$681.79 (1.24%) $8.37
JPMorgan Chase & Co. Stock Quote
JPMorgan Chase & Co.
JPM
$114.05 (1.28%) $1.44
Jefferies Financial Group Inc. Stock Quote
Jefferies Financial Group Inc.
JEF
$27.93 (1.12%) $0.31

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