Tesla Struggles with Delivery Goals and AI Tech Expectations, Analysts Adjust Financial Forecasts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 03 2024
0mins
Should l Buy TSLA?
Source: Business Insider
Truist Securities Analyst's View:
- Truist Securities analyst William Stein reiterated Tesla with a Hold rating and lowered the price target due to lower delivery figures.
- Stein reduced annual unit delivery, revenue, and EPS estimates for 2024 and 2025 based on ASP analysis.
Tesla's Recent Challenges:
- Tesla reported Q1 2024 deliveries below expectations, citing various factors including production ramp issues and external disruptions.
- Lowered ASPs in China and ongoing pricing adjustments are expected to continue impacting demand.
Analyst Insights and Projections:
- HSBC analyst Michael Tyndall maintained a Reduce rating on Tesla due to earnings pressure from softening growth and aggressive pricing.
- Tyndall highlighted challenges in meeting delivery targets, potential delays in Model Y refresh, and uncertainties in pre-revenue ventures' commercialization.
Financial Impact:
- Tesla's stock value dropped by 14% in the last year, with concerns over governance and future direction if CEO compensation disputes are not resolved favorably.
- Analysts project a decrease in 2025 EPS due to lower unit assumptions and pricing strategies affecting profitability.
Investment Opportunities:
- Investors can access Tesla stock through ETFs like Tidal ETF Trust II The Meet Kevin Pricing Power ETF and Vanguard Consumer Discretion ETF.
- Despite recent challenges, Tesla shares traded higher at $169.74 on the last check.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 417.070
Low
25.28
Averages
401.93
High
600.00
Current: 417.070
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in Capital Expenditure: Tesla plans to invest over $20 billion in capital spending by 2026, more than double last year's expenditure, highlighting its ambitious vision for the electric vehicle market, especially as competitors scale back their investments.
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