Tesla could face another tough quarter after its sales fell to their lowest level since 2020 earlier this year.
The electric car maker is expected to face a “complicated” period in three months, according to analysts at Robert W. Baird & Co. Ben Kallo, an analyst at Baird, said in a note that he expected the automaker to deliver almost 5% fewer cars during the month. second quarter 2024 compared to the same period of the previous year, according to a report from Market monitoring.
“We believe first quarter results will be complicated due to several one-time items and continue to believe second quarter estimates are likely still high,” Kallo wrote, according to Market monitoring.
The analyst said the company expects Tesla to continue to struggle to increase sales in the coming months due to rising interest rates.
“It is undeniable that the demand environment has deteriorated,” Kallo writes in the note: according to a report from Bloomberg.
Despite the note of caution about future delivery numbers, Baird removed Tesla from his Bearish Fresh Pick list, citing Elon Musk’s announcement that Tesla would unveil its first robotaxi in August, as well as growth in the transportation sector. ‘energy. The company was initially listed after a Delaware judge struck down Elon Musk’s $55 billion pay package.
“We believe Tesla will likely unveil both a robo-taxi and a $25,000 vehicle,” Kallo wrote. “In the past, Tesla shares traded higher during these events and became a ‘sell the news’ type event.”
Musk announced that the company would introduce its first robo-taxi shortly after Reuters published a report indicating that Tesla had abandoned plans for its $25,000 electric vehicle. In response, Musk written the that “Reuters is lying (again)”.
Last week, Tesla’s first quarter delivery numbers fell below Wall Street’s lowest estimates, falling 20% from the previous quarter and more than 8% year-over-year. At the time, Tesla blamed the decline in its production ramp for the problem refreshed model 3, an arson attack at its Berlin factory and supply chain problems caused by the Red Sea conflict. Tesla shares fell more than 5% the day the delivery numbers were released and more than 29% year to date.
For his part, Musk said Tesla was “between two major waves of growth.” But we do not yet know when the car manufacturer will emerge from the crisis.
The CEO of Tesla said: “we dug our own grave” with production of the Cybertruck ramping up. Meanwhile, Musk is already developing plans for what appears to be an increasingly ambitious project. Second generation Tesla Roadster.
A Tesla spokesperson did not immediately respond to a request for comment.
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