Tesla Inc (TSLA)

[jimmybob]

Jefferies sees 'minor red flags' in Tesla annual filing, ups target to $250
Tesla's annual filing contains "minor red flags," Jefferies analyst Philippe Houchois tells investors in a research note. Purchase obligations of $2.7B imply fiscal year production in the 250,000-400,000 range, leaving "limited room for error," Houchois writes. His production estimate for the year is 273,000 units. Further, the analyst believes Tesla's lease accounting change helps profit but may understate liabilities by removing $3B of resale value guarantee from accounts but not the economic risk. Stopping Model 3 production for a week to reduce bottlenecks should have improved the odds of posting close to a 2,500 vehicle per week run-rate by Q1 end, the analyst adds. He assumes Q1 deliveries of 35,000, including 10,000 Model 3s and 13% gross margin. Houchois raised his price target for Tesla shares to $250 from $240 and keeps an Underperform rating on the stock