Tesla hit with downgrade lower sales growth warning: 4 big analyst cuts
Investing.com | Author Davit Kirakosyan
Published Jan 25, 2024 08:00AM ET
Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Tesla, Boeing, Hertz Global, and VF.
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Tesla's stock fell more than 8% pre-market today following CEO Elon Musk's warning about slower sales growth despite price cuts that have already negatively affected margins. The company's Q4 results missed consensus estimates on the top and bottom lines.
KGI Securities highlighted the company’s guidance of a slower growth rate in 2024 compared to 38% in 2023, as Tesla prepares for its next growth phase with new vehicle models starting production at the end of 2025.
KGI Securities trimmed its 2024 vehicle delivery estimate to 2 million units (up 11% year-over-year), but raised Cybertruck deliveries estimate to 56,000 units. Tesla's recent price reductions for the Model 3 and Y are factored into the analysts’ revised 2024 sales forecast of $101.2 billion, representing a 5% increase from the previous year.
While we foresee gross margin pressure easing when interest rates fall, likely starting in 2H24, R&D investments and ramp up of next-generation vehicles could weigh on gross margin recovery before 2H25F. As a result, we cut 2025F EPS to US$4.68.
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