Tesla, Inc.'s (NASDAQ:TSLA) subpar first-quarter deliveries number triggered negative reactions from most analysts, although some still see light at the end of the tunnel.
Caught Off Guard: Deepwater Asset Management's Gene Munster said Tesla's first-quarter sales caught him off guard, as he was bracing for flattish sales year-over-year. The company reported an 8.5% year-over-year sales decline and a 20% sequential plunge.
The tech analyst said deliveries for the year could fall by 3% for 2024 if the company manages to report 10% sequential growth for the year, as opposed to the 15% growth the Street was modeling. “So this is probably more ugly than it seems even today,” he said in a CNBC interview. The changed outlook isn’t factored in the stock, he added.
Munster sees the stock going down further but not down to $100 as some called out, as “this is going to be…kind of kitchen sink.”
The venture capitalist, however, is positive about the bigger picture. Electric vehicles are a $2.5 trillion market. “I think eventually they [Tesla] will get to the other side,” he said. He also sees full self-driving software, likely fructifying in the next two years, as another catalyst.
Also, by mid-2025, comparisons become easier and this will start getting reflected in the stock, probably in mid- to late-2024, Munster said.
In a post on X, formerly Twitter, he said, “While EVs are in the dumpster, the pendulum will swing back in favor of the theme and because electrification and autonomy are the future and Tesla is the leader.” The storm the company is currently facing will pass as it makes the right decisions for the long run, he added.
CANACCORD Maintains Positive Stance: Despite the weak numbers, CANACCORD Genuity analyst George Gianarikas maintained a Buy rating and a $234 price target for the stock. The issues of the first quarter were somewhat demand-related ...