Tesla Analyst Gary Black Flags Key Concern Amid Q2 Delivery Cheer: 'I Would Much Prefer...'

Tesla, Inc. TSLA reported record-breaking production and delivery numbers for the second quarter, but some skeptics argue that the optimistic outlook is already priced into the stock.

But Wait: However, Future Fund‘s Gary Black has a different perspective. In a tweet, he stated that Tesla’s stock is expected to rise on Monday in response to the update. With 466,000 deliveries reported by the electric vehicle maker, Black believes that the second-quarter adjusted earnings per share will surpass the current consensus of $0.78.

See Also: Everything You Need To Know About Tesla Stock

More Charge Left? While Tesla shares have more than doubled this year following a slump in 2022, the aggressive price cuts implemented by the company to boost volume have raised concerns about the stock’s valuation. Despite this, Black said “a beat is a beat,” adding that it could generate a more positive sentiment towards the stock.

Fear Factor: Black said margin worries remain an overhang as Tesla is already offering discounts on inventory at the start of the third quarter to drive volume. Recent reports indicate that Tesla has reduced prices for Model Y and Model 3 in Australia by A$3,900 and is also discounting Model 3 inventory vehicles in Canada and the U.S.

As a long-term investor, Black expresses a preference for Tesla to explore new advertising strategies promoting electric vehicle adoption rather than relying on early-quarter discounts. He believes that such discounts would only make sense if they were aimed at clearing excess Model 3 inventory for an upcoming refresh.

Price Action: Tesla’s stock closed Friday’s session at $261.77, marking a 1.66% increase, according to data from Benzinga Pro.

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