ExistenceTeslaWith first-quarter vehicle deliveries set to be released next week, analysts say Tesla and its CEO are concerned as demand in China remains weak.muskThose who are experiencing “Nightmare Season 1” which they want to forget as soon as possible will have to face a “scary period”. After Tesla’s market value declined by $350 billion since July last year,investIt’s still hard to remain optimistic.
Analysts have significantly revised down Tesla’s first-quarter vehicle delivery forecast. Data compiled by FactSet shows analysts expect there will be 457,000 vehicles, up from 423,000 vehicles in the same period last year, but below market expectations at the end of January. 494,000 vehicles.
Dan Ives, a Wedbush analyst who has long been bullish on Tesla, pointed out that Tesla experienced a “nightmare quarter” under the perfect storm of demand issues. “Although supply issues (planned factory production cuts and the Berlin factory fire) have impacted supply, it is undeniable that this is a quarter that (Tesla CEO) Musk and Tesla want to forget.
He pointed out that the intense competition and price war in China are Tesla’s biggest challenges and are issues that must be faced before the end of the year. He expects Tesla to release vehicle delivery data on April 2 and that China’s first quarter vehicle delivery volume will decline by 3% to 4%.
Deutsche Bank analyst Emmanuel Rosner on the 28th lowered Tesla’s first-quarter delivery estimate to 414,000 vehicles, mainly due to lower-than-expected sales in China and the impact of planned production cuts at the Shanghai plant. They cut their full-year vehicle delivery forecast to about 1.9 million vehicles, below the analysts’ consensus forecast of 2.06 million.
Rosner believes that after Tesla “cut prices” in China and Europe earlier this quarter and made other price adjustments in February to boost sales, margins and profits will remain under pressure. “Although Tesla announced that prices will be reduced in the United States and China we believe the increase, introduced in April, is an attempt to boost sales in March rather than a sign of solid demand.”
However, Wedbush’s Ives is still optimistic that Tesla’s fully self-driving assistance technology will become a disruptive topic, but investors’ patience is rapidly running out. Musk’s recent comments on building AI systems outside Tesla and controversies such as Musk’s salary have increased investor concerns. Impatience.
He believes that if he wants to take the initiative, Musk will have to provide specific ranges for this year’s profits and vehicle deliveries over the next few months, discuss China issues and strategies to reverse the decline and A complete road map has to be explained. He reiterated Tesla’s stock rating as Outperform and lowered the stock price target to $300, which is still 70% above the current price. On the 28th, Tesla’s stock price fell 2.3%, closing at $175.79.
The selling pressure on Tesla’s share price stems from weak demand for electric vehicles, difficult self-driving technology problems that hinder its path to becoming an AI giant, and Musk’s personal turmoil. Even before investors have a clear understanding of the electric vehicle sales outlook for this year and the next two years, concerns will remain in your mind.
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