Tesla’s (TSLA) car registrations in China plummeted 64% in April, compared to March, according to consultancy firm LMC Automotive’s data.Specifically, the electric-vehicle maker’s China registrations dropped to 4,633 units from 12,709 units the previous month. This includes imported cars. “Tesla’s sales in the first month of each quarter are usually lower than the remaining two months” points out Reuters.Meanwhile sales of Tesla’s Model 3 sedan in China plunged 64% in April vs March, according to the China Passenger Car Association (CPCA). Tesla sold 3,635 Model 3 cars in April, a significant decrease from the 10,160 vehicles sold in March.Commenting on the stock after a meeting with Tesla’s investor relations, Emmanuel Rosner at Deutsche Bank, kept to his Hold rating with a $850 price target, despite saying that the company’s message was positive.“While management provided few details about its 2Q/2020 outlook, it believes Fremont production can ramp back up very quickly given its experience in China and that the supply chain is already coming back online,” Rosner told investors.Indeed, for the second quarter, Morgan Stanley analyst Adam Jonas is forecasting a 2Q delivery drop of 13% Q/Q (19% Y/Y) and free cash burn of $2.7bn. He is also sticking to the sidelines, arguing that with Tesla’s stock trading at 13x projected 2025 EV/EBITDA there are likely better ways to invest in tech right now.Overall, the Hold consensus is based on 9 Sells, 9 Holds, and 8 Buys. Following the stock’s jaw-dropping 94% YTD rally the $604 average price target projects 26% downside potential in the shares in the next 12 months. (See Tesla’s stock analysis on TipRanks).Related News: Uber’s Latest Takeover Offer Said To be Rejected By GrubHub Tesla Gets County Nod To Reopen California Auto Plant – Report Saudi Arabia’s Sovereign Fund Snaps Up $7.7B Of US Stocks, Including Boeing and Facebook More recent articles from Smarter Analyst: * Novavax Seeks To Raise $250 Million From Share Sale; Top Analyst Bumps Up PT * Baidu Pops 8% After-Hours On Strong Earnings Beat * Amazon Is Said To Be In Talks To Buy Bankrupt J.C. Penney * Starbucks Back To Business In Japan Today
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Amazon.Com Inc. (AMZN) is said to be interested in snapping up debt-strapped J.C. Penney Co. Inc., (JCP) in a deal that would bolster the online retailer’s apparel business, Women’s Wear Daily reported.Shares in J.C. Penney plunged another 23% to $0.18 before being halted on Monday. The report comes after the U.S. apparel and home retailer on Friday filed for bankruptcy protection proceedings.As part of its “renewal” plan, the Plano-based company said it will to cut its debt, streamline operations, close stores and spin off a real estate division in a move to come back in a stronger position. It has about 850 stores across the U.S. and Puerto Rico.“There is an Amazon team in Plano as we speak,” according to the WWD report. “There is a dialogue and I’m told it has a lot to do with Amazon eager to expand its apparel business.”J.C. Penney has $500 million in cash on hand as of the Chapter 11 filing date, the retailer said in a SEC filing. In addition, the company received commitments for $900 million in financing from its existing first lien lenders, which includes $450 million of new money.“This financing, combined with cash flow generated by the company’s ongoing operations, is expected to be sufficient to meet J.C. Penney’s operational and restructuring needs,” the company said. “As part of the commitment from its existing lenders, J.C. Penney will explore additional opportunities to maximize value, including a third-party sale process.”It looks like Amazon is on a shopping spree as the economic crisis induced by the coronavirus pandemic is creating opportunities for mergers and acquisitions. The world’s largest online retailer has reportedly also held talks to buy debt-strapped theatre operator AMC Entertainment Holdings Inc. (AMC).Wall Street analysts are bearish about J.C. Penney’s stock with 2 Sells and 2 Holds adding up to a Moderate Sell consensus. Should the $0.36 average price target be met, investors could be looking at 98% upside potential in the shares in the coming 12 months. (See J.C. Penney stock analysis on TipRanks).Related News: AMC Pops 11% Amid Potential Acquisition Talks by Amazon Uber’s Latest Takeover Offer Said To be Rejected By GrubHub Apple is Said to Snap Up Startup NextVR For Virtual Reality Content; Top Analyst Sees Buying Opportunity More recent articles from Smarter Analyst: * Baidu Pops 8% After-Hours On Strong Earnings Beat * Starbucks Back To Business In Japan Today * Moderna Prices $1.3B Equity Offering at $76/Share * Uber Pops More Than 6% On Second Round Of Layoffs, Site Closures