Tesla: analysts revise their forecasts following results

(CercleFinance.com) - Tesla shares fell sharply on the New York Stock Exchange on Thursday, following the publication of quarterly results that fell short of expectations and a poor outlook.


The electric vehicle manufacturer warned last night to expect a slowdown in the growth of its vehicle deliveries in 2024, following a 38% increase in sales last year.

This projection has led many financial analysts to revise their price target on the stock.

Canaccord Genuity's teams have reduced their target from $267 to $234, but remain Buy on the stock, warning that investors will now have to be "patient".

The next-generation platform, the full autonomous driving system (FSD) upgrade, improved margins and the Optimus robot project will undoubtedly lead to an acceleration in sales growth", promises the Canadian broker in a note released this morning.

But it won't be this year', it warns, warning that fiscal 2024 will be 'lacklustre', but will probably be a 'low point' in the group's growth history.

At Jefferies, which has a 'hold' rating on the stock with a target of $225, we would point out, however, that the launch of the next-generation platform is not scheduled until the second half of 2025.

The harshest revision came from analysts at Mizuho, who lowered their target from $310 to $270, attributing the expected bout of weakness in 2024 to the reduction in subsidies for the acquisition of electric vehicles, as well as to gloomier consumption.

The harshest words, however, went to Dan Ives, the star analyst at Wedbush Securities, who lowered his target from $350 to $315 following the previous day's publication.

We were totally wrong in thinking that Musk and his teams would behave like adults on the conference call and provide us with strategic and financial information on current price declines, margin structure or demand volatility", he writes.

Instead, we were treated to a long-winded explanation of Tesla's long-term vision and a conference call that sounded like a lot of nonsense", he laments.

The only dissenting voice in this chorus of skeptical comments, New Street Research believes that today's low share price could be a good entry point for building positions.

By falling by almost 10% today, Tesla has seen its market capitalization melt away by around $65 billion. Since January 1, the share price has fallen by over 25%.

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