VCR - Tesla Struggles with Delivery Goals and AI Tech Expectations Analysts Adjust Financial Forecasts | Benzinga
Truist Securities analyst William Stein reiterated Tesla Inc (NASDAQ:TSLA) with a Hold and lowered the price target from $193 to $176.
On April 2, Tesla reported first-quarter 2024 deliveries 15.4% below FactSet consensus, citing various factors.
This, combined with Stein’s proprietary ASP analysis, led him to reduce his annual unit delivery, revenue, & EPS estimates for calendar year 2024 & calendar year 2025.
Longer-term, he noted Tesla as a significant supplier of AI tech. Unfortunately, pricing & demand dynamics diminish the value of the automotive business and AI updates continue to disappoint.
Also Read: Tesla Plans Site Scouting In India For New EV Plant: Report
The next catalysts would be the unveiling & sale of the next-gen vehicle, which is close from near-term events, as per the analyst.
The press release blamed the decline in volumes as partially due to the early phase of the production ramp of the updated Model 3 at its Fremont factory, combined with factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin.
Still, he insisted on reconciliation of these production-related issues quickly with the quarter’s inventory build.
Stein’s data analysis suggests that ASPs fell slightly less than previously expected.
His analysis indicates that many price cuts occurred in the Chinese region. ...