Jefferies noted in a report that Tesla (TSLA.US) 's 1Q EBIT was 10% above the median market forecast, while revenue was in line with expectations. Gross margins were slightly better than consensus expectations, more than offsetting rising operating expenses.
Jefferies commented that Tesla CEO Elon Musk is seeking to calm the market by accelerating the launch of new products, but the risk of making product compromises will increase accordingly. At the same time, Musk insisted on developing Robotaxi, but there is no clear timetable or business model information yet. The broker also stated that his comments on the conference call about revenue growth and inventory reduction in 2Q seemed a bit optimistic.
Jefferies rated Tesla Hold and gave it a US$165 target price.
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