TPI Composites files for Chapter 11 bankruptcy, plans delisting from Nasdaq
By Senad Karaahmetovic
NewStreet Research analyst Pierre Ferragu sees the risk of Tesla’s free cash flows numbers missing Q2 estimates by quite a margin.
Several headwinds, like lower deliveries, the slow ramp of Texas and Berlin, staff layoffs, and Bitcoin price plunge, are likely to weigh on Tesla’s Q2 results, Ferragu warned in a client note today.
The analyst expects Tesla (NASDAQ:TSLA) to report GAAP EPS of about $1.3, which represents a decline of 55% compared to the first quarter.
“This is largely reflected in consensus expectations,” Ferragu added.
However, Ferragu expects a much bigger miss on FCF.
“Consensus expectations are not aligned with the impact lower deliveries will have on working capital. We expect breakeven FCF vs consensus $900m,” he added.
The analyst also echoed the views of several other Tesla analysts when it comes to the H2 setup.
“Tesla achieved a new monthly production record in June, and continued ramp of Berlin and Texas will support strong sequential growth.”
Net-net, Ferragu urged clients to buy “any weakness on the print” as Tesla’s long-term thesis remains intact.
“We expect material earnings revisions in the next 2 years,” Ferragu concluded.