Tesla Sales Expected to Dip for 2024 calendar year

0 0
Read Time:2 Minute

Tesla Faces Challenges in 2024

In the first quarter of 2024, Tesla encountered significant difficulties, and sadly, this trend may persist throughout the year. Expert analysts are now projecting a decrease in deliveries for the entirety of 2024 when compared to the previous year.

Analysts’ Projections

Analysts at Piper Sander anticipate a 0.5% reduction in Tesla’s car deliveries compared to the previous year, resulting in 1.8 million sales, as reported by Bloomberg. Conversely, a different analyst from Jeffries foresees a slightly steeper decline of approximately 3%, equating to 1.77 million vehicles. Subsequently, both analysts revised their stock price targets, with Piper Sandler setting theirs at $205 and Jefferies at $165. Currently, Tesla’s stock stands at approximately $172, marking a 30.5% decrease for the year.

Analysts’ Insights

“Growth is slowing, and there’s no quick fix,” stated Piper Sandler analyst Alexander Potter. He believes Tesla could potentially address demand concerns by 2026 through the introduction of a more affordable vehicle, increased production of the Cybertruck, and optimism towards the company’s driver-assistance software. Conversely, Jefferies analyst Philippe Hochois expressed skepticism regarding Tesla’s self-driving aspirations, suggesting that unveiling a robotaxi may boost sentiment but will not adequately address the necessary time frame and investment to make the technology and business model viable. Jefferies slashed its full-year earnings estimates by 30% and revenue projection by 15%.

Challenges Faced by Tesla

Tesla’s woes commenced with a disappointing first-quarter sales report, in which the company sold 386,810 vehicles but produced 433,371. This imbalance resulted in nearly 50,000 excess cars manufactured that could not be sold. Moreover, premium car models did not significantly contribute to sales and production metrics.

See also
Tesla Asks Shareholders to Approve Move to Texas

Specifically, the Model 3 and Model Y accounted for 369,783 sales and 412,376 deliveries, leaving the Model S, Model X, and Cybertruck with only 17,027 deliveries and 20,995 units produced. The overall sales figures fell short of consensus estimates by the widest margin to date, according to Bloomberg.

Future Outlook

To address the stock turbulence, Elon Musk teased the forthcoming launch of the long-awaited Robotaxi, aiming to mitigate the impact of the recent sales figures. Nevertheless, Tesla faces mounting pressure from rival automakers who are intensifying their efforts in the electric vehicle sector, posing a formidable challenge to Tesla’s dominance.

Image/Photo credit: source url

About Post Author

Chris Jones

Hey there! 👋 I'm Chris, 34 yo from Toronto (CA), I'm a journalist with a PhD in journalism and mass communication. For 5 years, I worked for some local publications as an envoy and reporter. Today, I work as 'content publisher' for InformOverload. 📰🌐 Passionate about global news, I cover a wide range of topics including technology, business, healthcare, sports, finance, and more. If you want to know more or interact with me, visit my social channels, or send me a message.
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %