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Why Tesla Stock Hit the Brakes Today

What happened

Shares of Tesla (NASDAQ: TSLA) were falling Tuesday after Deutsche Bank analyst Emmanuel Rosner cut his price target for the stock. Rosner thinks Tesla's second-quarter vehicle delivery numbers -- which will be reported at the beginning of July -- will be lower than previously expected.

Investors apparently didn't like what Rosner had to say, and drove the EV stock down by 4.6% as of 2:18 p.m. ET.

So what

Rosner lowered his price target for Tesla's shares to $1,125, down from $1,250, but maintained his buy rating on them. More importantly, he also cut his vehicle delivery estimate for the second quarter to 245,000 -- down from his previous estimate of 310,000 vehicles.

Image source: Getty Images.

Tesla investors are getting a little concerned that Rosner and a handful of other analysts have recently reduced their estimates for Tesla's second-quarter deliveries. The consensus estimate is now 273,000 vehicles, which would be significantly below the 310,000 vehicle deliveries Tesla made in the first quarter.

The revised estimates reflect analysts taking into account the factory shutdowns in China during the quarter, which were necessitated by the country's strict "zero COVID" policy.

Now what

Considering that Tesla will likely report second-quarter vehicle delivery numbers at the beginning of July, investors won't have to wait much longer to find out just how much the company was affected by the temporary closure of its Shanghai factory. And while some analysts are resetting their expectations, even the best estimates are still little more than educated guesses.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.


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