Tesla, the electric car company founded by Elon Musk, is expected to deliver fewer cars in the second quarter of 2020 than previously estimated. According to TD Cowen, an investment firm, the delivery estimate for Q2 has been trimmed due to the impact of COVID-19 on the automotive industry.
Despite this, TD Cowen maintains its buy rating for Tesla, reaffirming its confidence in the company’s long-term potential. This news comes as Tesla’s stock has been on a steady rise, with a 137% increase since the start of the year. So what does this mean for retail investors?
Firstly, the decrease in delivery estimates should not be a cause for concern. The global pandemic has undoubtedly affected the auto industry, and Tesla is not immune to its effects. However, with a strong buy rating from TD Cowen and a track record of success, Tesla remains a solid investment option for retail investors looking for long-term growth.
Secondly, the current stock price of Tesla may present an opportunity for investors. While the stock has already seen significant growth this year, with a market cap surpassing that of Toyota, some analysts believe it still has room to grow. With a strong focus on innovation and sustainability, Tesla is well-positioned to continue its success in the electric car market.
In conclusion, while Tesla’s Q2 delivery estimate has been trimmed, retail investors should not be deterred. The company’s long-term potential remains strong, and the current stock price may present an opportunity for growth. As always, it’s essential to do your own research and consult with a financial advisor before making any investment decisions. But for now, it seems like Tesla is still a smart choice for those looking to invest in the future of electric vehicles.