What To Expect From Tesla's Q1 Earnings Report On Monday

Tesla is well positioned to capitalize on the opportunity presented by the exponential growth that is anticipated for green energy vehicles. Its Giga Shanghai factory is now churning out both Model S and Model Y vehicles, and more capacity is expected to come on line with the opening of factories in Berlin and Texas.

Tesla's CFO Zach Kirkhorn said on the earnings call that the company is shooting for a 50% compounded annual growth rate in volume sales and expects to materially exceed the target in 2021.

Stock Take

Tesla's shares, which were flying high until early February, joined the tech sell-off that ensued. From a split-adjusted high of $900.40 on Jan. 25, the stock fell to $539.49 on March 5, a peak-to-trough decline of 40%. Although the stock has made good some of the losses since then, it is yet to break above $800 level.

Tesla holds a several-year lead and is now expanding aggressively into storage, and therefore a premium valuation for its shares is justified, CANACCORD Genuity analyst Jed Dorsheimer said in a recent note. The firm has a $1,071 price target for the stock. Friday, Tesla's shares ended 1.35% higher at $729.40.

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