UBS now expects a wider loss for Tesla’s second quarter, citing the company’s recent decline in quarterly vehicle deliveries.
In a note sent Wednesday, UBS analyst Colin Langan said he projects a loss per share for the period of $1.80, compared with an earlier estimate of $1.32 per share. His full-year estimate is now for a loss per share of $4.20, compared with $3.70 a share, due to a shortfall in vehicle deliveries.
Tesla did say later that in the final days of the quarter, 3,500 vehicles were in transit to their owners and would be counted along with third-quarter results.
But Langan said demand for the S and X models is slowing, given roughly flat production since the fourth quarter of 2016, the offering of the lower-priced 60D versions, the age of the Model S and rising inventory.
Tesla was not immediately available for comment.
Langan also expects capital expenditures to push Tesla’s second-quarter cash burn to $1.4 billion, far above the roughly $620 million spent in the first quarter.