Tesla shares will fall significantly because the company will not be profitable in 2019, according to UBS.
it expects positive GAAP net income in its third and fourth quarters.
The analyst lowered his Tesla second-quarter earnings per share forecast to a $3 loss from a $1.71 loss versus the Wall Street consensus estimate of a $2.88 loss. He raised his third-quarter earnings per share projection to a positive 72 cents from a 81 cent loss but lowered his 2019 earnings per share estimate to a $1.65 loss from a $1.15 loss versus the $2.34 consensus.
Tesla is slated to report its June quarter earnings results Wednesday. The company’s stock is down 4.6 percent this year through Friday versus the S&P 500’s 5.4 percent gain.
— CNBC’s
Michael Bloom
contributed to this story.