In a new report, Goldman Sachs analyst Patrick Archambault explained why Tesla’s Q3 earnings report wasn’t as bad as some had feared. However, the company’s recent numbers don’t make the stock a buy just yet.

Estimate Changes

Tesla’s reported Q3 revenue of 1.24 billion came in slightly above Goldman’s estimate of $1.2 billion. However, Tesla’s EPS of -$0.58 came in just shy of Goldman’s -$0.55 projection. Archambault blames this miss on higher-than-expected opex.

Following the Q3 report, Goldman has slightly reduced its gross margin outlook for the company and expects that Tesla will report on the low end of its 50,000-52,000 delivery guidance.

Goldman has reduced its 2016/2016/2017 EPS projections from -$0.64/$2.55/$3.89 to -$1.52/$2.27/$3.46.

Outlook

Despite another shipment guidance reduction, Archambault points out…

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