tl;dr
Analysts are expressing concerns about Tesla (NASDAQ:TSLA) after the company's Q1 deliveries report fell well short of expectations, despite implementing price cuts during the quarter. HSBC cautioned that in order for Tesla to reach the current 2024 consensus estimate, deliveries will need to incre...
Analysts are expressing concerns about Tesla (NASDAQ:TSLA) after the company's Q1 deliveries report fell well short of expectations, despite implementing price cuts during the quarter. HSBC cautioned that in order for Tesla to reach the current 2024 consensus estimate, deliveries will need to increase by 17% in the remainder of the year. Analyst Michael Tyndall suggested that the price cuts are not generating the expected volume growth for the electric vehicle maker. Besides the challenges related to pricing and the deceleration in electric vehicle growth, HSBC also highlighted uncertainties surrounding the timing and commercialization of Tesla's various projects, such as Dojo, FSD, and Optimus, which significantly contribute to the stock's valuation. The firm reduced its price target on Tesla to $138 after cutting its 2024 EBIT estimate by 18%. Although Morgan Stanley maintained its Overweight rating on Tesla, the firm anticipates a share price recovery only in the second half of the year. Analyst Adam Jonas suggested that in the short term, Tesla should consider cost-cutting measures to preserve margins rather than intensifying price cuts. The Q1 deliveries miss is expected to prompt further noteworthy reductions in EPS consensus from the Street. Wedbush Securities analyst Dan Ives described the quarter as an unmitigated disaster for Tesla. Seeking Alpha's Investing Group Leader Livy Investment Research upheld a Sell rating on Tesla and underscored the limited structural tailwinds to the company's core auto business. On the other hand, Cathie Wood's ARK Invest seized the opportunity to buy the dip in Tesla by acquiring over 240,000 shares across three different funds on Tuesday. In premarket trading, Tesla's shares declined by 1.12% following a 4.90% drop on Tuesday. Year-to-date, the stock is down by approximately 33%. The Seeking Alpha Quant Rating for Tesla is Hold, characterized by low marks for valuation and momentum that weigh down the overall score.
More about Tesla Inc
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Tesla Inc: Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.
MANUFACTURING, MOTOR VEHICLES & PASSENGER CAR BODIES: 530681561000, 38.75, None, 4.3, 30.49, 0.155, 96772997000, 192.88, 1.115, 0.035
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