Category: Stock Market

At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. The benchmark index is currently up 0.45% to 7,528 points.

Here’s what is happening on the ASX 200 today:

Perpetual makes Pendal takeover offer

The Pendal Group Ltd (ASX: PDL) share price is shooting higher today after Perpetual Limited (ASX: PPT) made a takeover offer. According to the release, Perpetual has tabled the equivalent of a $6.23 per share scrip and cash takeover proposal to acquire its fellow fund manager. This values Pendal at $2.4 billion, which is actually greater than Perpetual’s own market capitalisation of ~$2 billion.

Domain shares return

The Domain Holdings Australia Ltd (ASX: DHG) share price has returned from its trading halt after completing the institutional component of its entitlement offer. Domain raised $162 million from institutional investors and will now seek a further $18 million from retail shareholders. These funds are being used to acquire Realbase. It is a leading campaign management technology platform in the Australia and New Zealand region.

Iluka shares

The Iluka Resources Limited (ASX: ILU) share price hit a record high this morning. This was driven by the mineral sands and rare earths company announcing a final investment decision on phase three of the Eneabba Rare Earths Refinery. Iluka will push ahead with phase three after its feasibility study demonstrated solid economics and significant potential for growth.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Pendal share price with a 20% gain following the aforementioned takeover approach. The worst performer on the index has been the Bank of Queensland Limited (ASX: BOQ) share price with a 3% decline. This is despite there being no news out of the regional bank. Though, it is worth noting that Macquarie downgraded its shares to a neutral rating on Friday.

The post ASX 200 (ASX:XJO): Perpetual makes Pendal offer, Iluka hits record high appeared first on The Motley Fool Australia.

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• Here’s why the performance of ASX 200 shares is smashing the S&P 500
• 5 things to watch on the ASX 200 on Monday
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Wesfarmers Ltd (ASX: WES) share price is higher this morning as the company shakes up the management of its Catch business.

The underperforming online marketplace is set to move from the company’s retail segment to its shiny new digital and data division.

The change has spurred Catch managing director, Pete Sauerborn, to walk away from the business.

At the time of writing, the Wesfarmers share price is $49.60, 0.02% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.42%. Meanwhile, the S&P/ASX Consumer Discretionary Index (ASX: XDJ) has slipped 0.37%.

Let’s take a closer look at the future of Wesfarmers’ online marketplace.

Wesfarmers’ OneDigital bags a new Catch

The Wesfarmers share price is in the green on Monday amid news the company is reshuffling its Catch business as part of a transformative divisional shakeup.

Wesfarmers has been alluding to a new digital and data division led by Nicole Sheffield for some time now.

Now, more details on the division – to be named OneDigital ­– have been released. They include Catch’s move from Wesfarmers’ Kmart Group to OneDigital from 1 July.

OneDigital is already home to Catch’s recently rebranded subscription program, OnePass, as well as Wesfarmers’ Advanced Analytics Centre.

Following the announcement of the move, Sauerborn has decided to leave the business. His position will be filled in the coming months.

Wesfarmers managing director, Rob Scott said the shakeup will see all the company’s digital pure plays housed under one roof. He continued:

Each of our divisions is developing significant capabilities in data analytics and digital services to meet the specific needs of their customers.

Wesfarmers OneDigital will complement these divisional capabilities … The Catch marketplace, together with the OnePass subscription program and the Advanced Analytics Centre, provide a strong foundation for Wesfarmers OneDigital.

This will support the growth and performance of our retail divisions while providing new growth opportunities for the group.

The move comes as the online marketplace struggles following a pandemic-related boom.

Catch brought in $315 million of revenue over the first half of financial year 2022 – 4.3% less than it did in the prior comparable period.

Its earnings before interest, tax, depreciation, and amortisation (EBITDA) loss also deepened last half. It fell from a $4 million loss to a $30 million loss.

Meanwhile, Catch’s gross transaction value increased 1%.

The market will hear more of Wesfarmers’ OneDigital division during the company’s strategy briefing day in June.

Wesfarmers share price snapshot

The Wesfarmers share price has been struggling through 2022 so far.

It has slipped 17% year to date. It’s also nearly 7% lower than it was this time last year.

For comparison, the ASX 200 has fallen 0.8% year to date and has gained 9% over the last 12 months.

The post Wesfarmers share price in the green amid overhaul news appeared first on The Motley Fool Australia.

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• It’s payday for Wesfarmers shareholders today. Here’s the deal

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Pendal Group Ltd (ASX: PDL) share price is rocketing on Monday after the company received a $2.4 billion takeover offer.

At the time of writing, the fund manager’s shares are up 23.44% to $5.53 apiece.

What the details of the Pendal takeover?

Pendal shares have opened up with a bang as investors digest the company’s latest announcement.

In its statement, Pendal advised that it has received a conditional, non-binding indicative proposal from Perpetual Ltd (ASX: PPT).

The latter is seeking to acquire 100% of Pendal shares by way of a scheme of arrangement.

According to the details, the indicative proposal is for a consideration of one Perpetual share for every 7.5 Pendal shares.

Furthermore, each Pendal shareholder will receive $1.67 for every Pendal share owned prior to the takeover. This represents an indicative value of $6.23 per Pendal share based on the closing price of Perpetual shares last Friday.

Should the proposed component of the scrip consideration follow through, Pendal shareholders would own approximately 48% of the merged entity.

The indicative value of $6.23 also reflects a 35.4% premium to Pendal’s 30-day volume weighted average price up until 1 April.

It’s worth noting that the proposal from Perpetual is subject to a number of conditions. These include due diligence, negotiation and execution of transaction documentation, receipt of all regulatory approvals (including ACCC and FIRB), and no adverse material change to Pendal’s operations.

However, the Pendal board did note that the indicative proposal has been offered at a time where broader market volatility has disrupted global markets. This relates to recent geopolitical instability and the economic impacts of the ongoing COVID-19 pandemic.

Nonetheless, the board has commenced an assessment of the indicative proposal, taking into account the strategic value of Pendal.

While shareholders don’t need to do anything for now, Pendal advised it will update the market as developments occur.

Pendal share price review

Despite surging today, it has been a disappointing 12 months for Pendal shares, falling by almost 15%.

Early last month, the company’s shares reached a 52-week low of $4.04 before staging a small rebound of late.

Based on valuation grounds, Pendal commands a market capitalisation of roughly $2.12 billion, with approximately 383 million shares on hand.

The post Pendal (ASX:PDL) share price rockets 23% on $2.4b takeover approach appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The A2 Milk Company Ltd (ASX: A2M) share price was out of form in March.

During the month, the embattled infant formula company’s shares dropped 5.2%.

This compares unfavourably to a 6.4% gain by the ASX 200 index over the period.

What happened to the A2 Milk share price last month?

The A2 Milk share price came under pressure last month for a couple of reasons.

The first was comments out of the company that revealed that its operations have been impacted by the recent flooding in Queensland.

The company told The Australian that “flooded paddocks, severe pasture damage, and rising floodwaters, […] have cut off roads in low-lying areas, restricting access for milk tankers.” It also warned there could be delays collecting milk from farms.

What else?

Also appearing to weigh on the A2 Milk share price was news that smaller rival Bubs Australia Ltd (ASX: BUB) is launching a competing A2-protein based infant formula product.

The new Bubs Supreme formula range will be on the shelf in 500 Coles Group Ltd (ASX: COL) supermarkets from May. This expands the company’s shelf presence in Coles stores, which already includes Bubs easy-digest goat milk formula and Bubs Organic grass-fed cow’s milk formula.

And while this won’t be the first competing product and Bubs’ track record of launching new products is decidedly average, A2 Milk investors appear a little concerned by the move. Particularly given the difficult trading conditions it is already facing in the key China market due to a slowing birth rate and a shift in consumer preference for Chinese infant formula brands.

Is this a buying opportunity?

One broker that is likely to see the A2 Milk share price weakness as a buying opportunity is Bell Potter.

Late last month it retained its buy rating with a trimmed price target of $7.15. This compares to the current A2 MIlk share price of $5.20.

The post What happened to the A2 Milk share price in March? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Tritium DCFC (NASDAQ: DCFC) gained 36.4% in March, according to data from S&P Global Market Intelligence. The electric vehicle (EV) charging company was taken public through a merger with a special purpose acquisition company (SPAC) in January, and its share price has seen big swings in conjunction with market momentum following the combination. 

The S&P 500 index climbed 3.6% last month, and the Nasdaq Composite index rose 3.4% across the stretch. Many companies with growth-dependent or otherwise speculative valuations saw big gains in the period, and companies in the EV and EV-charging spaces tended to be particularly big winners. 

So what

Tritium stock soared in February after the company announced at the White House that it was opening a new manufacturing factory in Tennessee. Following this news, Tritium announced a partnership that will see it providing fast chargers for Wise EV’s new national charging network.

The combination of these announcements prompted Tritium’s share price to skyrocket, but it saw a steep pullback as investors took profits on the gains and bearish momentum for the broader market spurred big valuation pullbacks for companies with forward-looking valuations. With investors becoming more bullish and open to taking on risk in March, money poured back into the company’s stock. 

Now what

Despite the explosive gains last month, Tritium’s share price is still down roughly 38% from the lifetime high that it hit in February. The company now has a market capitalization of roughly $1.3 billion and is valued at approximately 7.7 times this year’s expected sales. 

The fact that Tritium’s EV fast-charging technologies are already seeing real-world adoption is encouraging, and the company’s forward price-to-sales multiple doesn’t look particularly unreasonable given the huge room for long-term growth in the industry. On the other hand, investors should keep in mind that the company is coming fresh off of a SPAC merger, and that means that there’s still relatively limited visibility into the company’s business performance and other financials. Tritium DCFC could have big upside at current prices, but the stock also looks relatively high risk. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tritium stock skyrocketed 36% in March appeared first on The Motley Fool Australia.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The AUB Group Ltd (ASX: AUB) share price leapt out of the gate in early trade on Monday, amid the company hosing down speculation on an acquisition.

The company’s shares are currently trading at $23, up 2.04%. But earlier, AUB shares were as high as $24.20, a 7.36% gain on yesterday’s closing price.

Let’s take a look at what the insurance broker announced today.

What is happening at AUB?

AUB has shut down speculation it will acquire London-based Lloyd’s wholesale insurance broker Tysers.

AUB confirmed it has held talks with Tysers owner Odyssey Investment Partners about the transaction.

This included discussions with the senior management team. However, this has not led to a transaction. AUB said:

Although AUB believes in the strategic rationale of the potential transaction, the discussions have not led to a transaction being agreed on terms acceptable to the parties.

AUB reported underlying net profit after tax (NPAT) soared 17% to $30 million in half-year results in February. The company attributed this growth in underlying NPAT to organic growth and the contribution from acquisitions in Australian broking and agencies.

Prime Value Emerging Opportunities fund manager Richard Ivers has recently added to existing holdings of AUB due to it being a “high quality business” that “became cheaper”.

AUB share price recap

The AUB share price is soaring 18% over the past 12 months, but it has fallen 10.7% this year to date.

In the past month, AUB shares have jumped 5.75%, while they are up 1.6% in the past week.

For perspective, the benchmark S&P/ASX 200 Index has returned about 10% over the past year.

The post AUB Group (ASX:AUB) share price leaps amid acquisition talks appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Austbrokers Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Xero Limited (ASX: XRO) has long been a favourite ASX tech share of many investors. This online accounting software company has spent the past few years recording some impressive moves on the ASX boards. Enough even to invite Xero into the exclusive old WAAAX club of ASX growth shares that couldn’t seem to stop giving investors eye-watering returns a few years ago.

For some context, the Xero share price rose around 700% between April 2017 and April 2021.

But the past year has been more muted. Over the last 12 months. Xero shares have gone backwards by a painful 25%. In 2022 alone, the company has lost more than 30% of its value.

So with this sudden reversal of fortune for Xero, many investors might be wondering if this ASX tech share’s best days are behind it.

Well, one investor who still reckons Xero’s best days lie in front of the company is Raaz Bhuyan of WaveStone Capital. 

ASX expert names Xero as a buy today

Mr Bhuyan recently shared his views on Xero during a Livewire Markets podcast. Here’s why he still likes Xero shares going forward: 

But the only true technology business that we think is good in Australia is Xero… they have been quite successful in expanding overseas, and actually making a meal of it. So if you think about the businesses in Australia and New Zealand, they took on the incumbent, MYOB, and grew a business here, and they’ve gone to the UK and taken on Sage and done quite well.

We think that that’s quite good of Steve Vamos and his team, to have done all of that, and now they’re going into North America. So it feels like if the business is even half as successful in the US, they will do an incredible job. And it’s going to be one of the big tech companies I think, out of Australia…

So that’s a pretty emphatic endorsement of Xero’s future potential from an ASX investing expert.

Xero has indeed been ramping up its international expansion plans. The company’s last earnings report, which was delivered back in November last year, showed revenue growth across all geographic areas. United Kingdom revenues were up 24%, with strong growth coming from Xero’s ‘rest of world’ breakdown, which includes South Africa and Singapore. 

If Mr Bhuyan is right in his assessments, we could well continue to see growing numbers coming out of Xero for a while yet. But, of course, only time will tell. 

At the current Xero share price, this ASX tech share has a market capitalisation of $15.06 billion.  

The post Why Xero can become ‘one of the big tech companies’: ASX expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Brokers have lifted the lid on where they think some good dividend payouts are going to come from over the next year or two. Two ASX dividend shares may offer plenty of upside, according to the experts.

Investors may already know about some of the biggest dividend payers on the ASX, such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

However, these two ASX dividend shares are also expected to pay solid and growing dividends.

GQG Partners Inc (ASX: GQG)

GQG Partners is one of the larger fund managers on the ASX. It has a market capitalisation of $4.1 billion, according to the ASX.

The fund manager offers several different potential investment funds such as US shares, global shares, quality dividends, and so on.

Since the start of 2022, the GQG share price has fallen more than 20%. This has had the effect of pushing up the prospective dividend yield.

It’s currently rated as a buy by the broker Morgans with a price target of $2.27. That implies a potential upside of more than 60% over the next year.

The broker thinks that GQG has managed to show ongoing good fund inflows and investment performance, despite the volatility in market conditions.

In the latest monthly funds under management (FUM) update, the ASX dividend share said that over February 2022, its FUM had fallen from US$91.3 billion to US$89.8 billion. Despite all of the market volatility, it still experienced US$1.6 billion of FUM inflow over the month.

Morgans thinks that GQG has a forecast dividend yield of 7.25% in FY23.

Bapcor Ltd (ASX: BAP)

Bapcor is a large auto-parts business. It claims to be the leading player in Australasia.

It operates various brands, including Autobarn, Autopro, Midas, ABS, Shock Shop, Battery Town, Burson Auto Parts, AAD, Bearing Wholesalers, Baxters, MTQ, BNT, Truckline and WANO.

The company is looking to expand its store network both domestically and abroad. In FY21, it had around 1,100 locations. Over the next five years it wants to grow that number to more than 1,500. The company is also investing in refurbishing its store network as well.

The ASX dividend share wants to increase the market share of its own-brand products, which typically come with higher margins. Bapcor is also working on supply chain initiatives that can help it become more efficient and profitable.

Bapcor Asia has two parts. It has a small but growing network of Bursons in Thailand, currently eight stores and is looking to add more. It opened its first store outside of Bangkok in October. Thailand sales were 85% higher in the second quarter of FY22 compared to the first, as lockdown measures eased.

The company also owns 25% of Singapore-listed Tye Soon. That’s an auto parts business with around 60 locations across Southeast Asia and Northeast Asia, notably in South Korea and Malaysia.

Bapcor has grown its dividend every year since FY15. The FY22 interim dividend was increased by 11.1% to 10 cents per share.

UBS thinks that the Bapcor share price is a buy, with a price target of $8.10. That implies a potential upside of around 30%. The broker doesn’t think that high petrol prices will impact the business much.

UBS has pencilled in a grossed-up dividend yield of 4.8% from Bapcor in FY23.

The post Brokers: 2 ASX dividend shares expected to pay juicy yields appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The JB Hi-Fi Limited (ASX: JBH) share price is up 0.4% amid news that the ASX retail share is reportedly thinking about trying to buy the smaller competitor Jaycar.

JB Hi-Fi is one of the largest retailers in Australia. It operates JB Hi-Fi Australia and The Good Guys, as well as JB Hi-Fi New Zealand.

But the company is thinking about expanding more by aiming for Jaycar, according to reporting by The Australian.

What is Jaycar?

Jaycar has over 110 stores across Australia and New Zealand, with around 1,000 staff.

It sells a wide array of products across tools and test equipment, sound and video, cables and connectors, components and electromechanical, power and batteries, hobbies and gadgets, security and surveillance, computing and communication, science and learning, outdoors and automotive.

Its mission is to provide a wide selection of quality electronic products at an affordable price.

The company also sells products online in both the UK and the US.

The founder and managing director of the company, Gary Johnston, passed away last year.

How close is JB Hi-Fi to buying Jaycar?

According to The Australian, there is an auction process for Jaycar, with the auction set to ‘ramp up’ in May. So, at this stage, JB Hi-Fi is planning to join the race for Jaycar.

The sale of the electronics retailer is being facilitated by Barrenjoey. The information memorandum is expected to be sent to the market in May.

It reportedly generates $60 million of earnings before interest, tax, depreciation and amortisation (EBITDA).

The newspaper reported that investors think that JB Hi-Fi (and Super Retail Group Ltd (ASX: SUL) want to find places to put to work the profit they have made over COVID-19.

But JB Hi-Fi isn’t the only one that’s reportedly interested in buying Jaycar. There are private equity groups that may be in the running like Quadrant and BGH Capital, according to The Australian.

What would this mean for JB Hi-Fi?

Time will tell whether JB Hi-Fi is a serious bidder in the auction process, and then whether it can be successful against the other bidders.

The Australian reported that Jaycar generates $60 million of EBITDA.

In the recent FY22 half-year result, JB Hi-Fi made $420.5 million of earnings before interest and tax (EBIT) (which was down 9.1%).

The company recently announced a capital return of up to $250 million through a share buyback, which management hope will support the JB Hi-Fi share price.

Recent sales

On 24 March 2022, the company announced a sales update to keep investors up to date.

In the FY22 third quarter to date, JB Hi-Fi Australia sales were up 11.3%, JB Hi-Fi New Zealand sales were up 2.9% and The Good Guys sales had grown by 5.7%.

JB Hi-Fi said that it continues to see heightened customer demand and strong sales growth. This sales growth, combined with disciplined cost control and an elevated gross profit margin, helped operating leverage across the group, according to management.

The post JB Hi-Fi (ASX:JBH) share price up amid acquisition rumours appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Super Retail Group Limited. The Motley Fool Australia owns and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Electric-car maker Tesla (NASDAQ: TSLA) reported first-quarter deliveries on Saturday. While the record deliveries were far higher than they were a year ago, they were short of analysts’ average estimate for the quarter.

On one hand, Tesla’s first-quarter deliveries are an impressive achievement given the global supply chain challenges. On the other hand, however, the fact that they were worse than expectations provide more confirmation to investors that the auto industry is struggling to recover from chip shortages and other parts and logistical issues that have been plaguing it. 

Tesla’s first-quarter deliveries: The raw numbers

Tesla delivered approximately 310,000 vehicles in Q1. This record quarterly figure is up from about 309,000 in the fourth quarter of 2021 but represents a staggering year-over-year growth rate of 68%. The figure also notably puts Tesla’s trailing-12-month deliveries at a figure above one million (about 1,061,000) — for the first time. This is up from trailing-12-month deliveries of approximately 596,000 just one year ago.

The deliveries in the quarter consisted of 295,324 Model 3 and Y vehicles combined and 14,724 total Model S and X vehicles. Model 3 and Y deliveries were down slightly sequentially while Model S and X deliveries were up 25% over the same time frame. The sharp sequential increase in Model S and X deliveries reflects Tesla’s ongoing ramp-up of production of these vehicles following an overhaul to their design in early 2021 that required updates to the electric-car maker’s production line. 

Analysts, on average, were expecting Tesla to deliver about 317,000 vehicles during the period. The underperformance likely took some investors by surprise because the sequential growth was the slowest Tesla has seen in years.

There’s hope for a strong second half

While the quarter’s deliveries may have missed analysts’ estimates, there’s still good reason to expect sequential growth to reaccelerate later this year, particularly in the back half of 2022. The company said in its fourth-quarter update that it expected production levels to increase at its existing factories and that it would bring production online at new factories in 2022. Indeed, production has already started at the company’s factory in Germany. And Tesla could be just months away from the start of production at its new factory in Texas.

But things could get worse before they get better. Tesla’s factory in China is currently on a production pause because of COVID-19 restrictions. Furthermore, it takes time to ramp up production at new factories. So any impact from Tesla’s factory in Berlin in Q2 could be very small. 

Despite supply shortages and a production pause in China, Tesla’s full-year guidance for 50% growth this year may be conservative enough for the company to still easily surpass this range, especially if some supply constraints are alleviated in the second half of the year — just as production potentially ramps up to meaningful levels at new factories. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should investors worry about Tesla’s Q1 deliveries miss? appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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