2024-01-31 09:23:19 ET
Summary
- Tesla is facing significant headwinds going into 2024 with waning consumer demand, production slowing down, and political challenges relating to tax credits and their long-range Model 3.
- Lower sales volumes, lower production, and higher capital investments in FY24 will result in tighter margins and lower free cash flow flow-through for Tesla.
- BNEF forecasts 20% global growth for EVs in 2024, reaching 16.7mm total vehicle sales.
Tesla, Inc. (TSLA) is faced with significant challenges going into FY24 as the firm seeks to both ramp up production of the Cybertruck and implement their next-gen factory during a time of lagging consumer sentiment towards electric vehicles ("EVs") and a global economic slowdown . As the micro/macroeconomic challenges stack up, Tesla CEO Elon Musk has voiced his growth concern for 2024 that led the stock to drop -12% post earnings and an additional -27% since . With the challenging macro environment, I now recommend TSLA shares with a SELL recommendation with a price target of $130.86/share....
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Tesla Faces Major Headwinds In EV Demand In 2024