Tesla really had one rough first quarter of 2024and unfortunately for Elon Musk’s car manufacturerit doesn’t seem so an isolated case. Industry analysts are now expecting this Deliveries for the entire calendar year 2024 will be significantly reduced compared to 2023.
An analyst at Piper Sander expects the Austin, Texas-based automaker Delivering 0.5 percent fewer cars than in the previous year. That corresponds to a good 1.8 million sales Bloomberg. Admittedly, that’s still a pretty strong number. Another Jeffries analyst sees selling drop a little more – around 3 percent to 1.77 million vehicles.
Based on these estimates, both analysts lowered their price targets. The Piper Sandler analyst lowered its value to $205 and the Jefferies analyst put the number even lower at $165. Currently, Tesla shares are around $172 and are down 30.5 percent year-over-year. Ouch.
Here’s more of what Piper Sandler analyst Alexander Potter and Jefferies analyst Philippe Hochois said Bloomberg:
“Growth is slowing and there is no quick fix,” Potter wrote in an April 9 report. Tesla should be able to overcome demand problems by 2026, he said, anticipating a lower-cost vehicle and increased production of the Cybertruck. More than half of his price target comes from the company’s upward movement Driver assistance software.
Houchois is relatively pessimistic about Tesla’s ability to realize its autonomous driving ambitions. “Revealing one Robot taxi on Aug. 8 may improve sentiment, but does not take into account the timeframe and investment required to make the technology and business model viable,” he said in a note to clients on Wednesday. Jefferies cut its full-year profit estimates by about 30% and its revenue forecast by 15%.
It all started when Tesla reported a pretty dismal first quarter sales report. The automaker sold just 386,810 vehicles in the first three months of 2024. 433,371 vehicles have now been produced. That means Tesla has built almost 50,000 more cars than could be sold. In addition, higher-priced cars had little impact on sales and production. We have already reported about it The Model 3 And Model Y This corresponds to 369,783 sales and 412,376 deliveries. If you do a little math, you’ll realize that Model S, Model X And Cybertruck That was just 17,027 deliveries and 20,995 units manufactured. It doesn’t look great, folks.
According to Bloomberg, sales missed consensus estimates by the largest margin ever (that’s only seven years, but still). To overcome part of the stock shock, Musk once again teased his soon-to-be-real robotaxi.
No matter how you look at it, Tesla is starting to feel pressure from other automakers that are finally getting serious about electric vehicles.