A Wedbush analyst provides their projections for Tesla's delivery numbers in the first quarter of 2024.
Wedbush Securities analyst Dan Ives has shared his projections for Tesla's Q1 2024 delivery numbers on X. He anticipates a potential demand challenge following what he described as a challenging quarter for Tesla China.
Ives estimates Tesla's deliveries to fall between 425,000 and 475,000 units for the first quarter. He highlighted the difficulties faced by Tesla during what he termed a "perfect storm" period.
Recent reports indicate that Tesla has scaled back its production output at Giga Shanghai to align with market demand in the competitive Chinese electric vehicle (EV) market. This adjustment includes reducing working days from 6.5 to 5 days per week.
Data from the China Passenger Car Association (CPCA) revealed a decline in Tesla China sales in February, with approximately 60,365 units sold, marking an 18.8% year-over-year decrease compared to the same period in 2023.
Despite the challenges faced by Tesla China, Dan Ives maintains a positive outlook on TSLA, albeit with caution. He has revised down his price target for TSLA to $300.
Similarly, Morgan Stanley analyst Adam Jonas expressed similar sentiments to Dan Ives. The investment bank adjusted its Q1 2024 delivery estimates for Tesla from 469.4k to 425.5k units. Jonas maintains an Overweight rating for TSLA and retains a price target of $320.
Adam Jonas foresees Tesla implementing price increases and cost-cutting measures to address its first-quarter performance. Despite the Q1 2024 forecast, Jonas sees growth potential for Tesla, especially with its recent collaboration with CATL in the Giga Nevada expansion.
------The article excerpted from TESLARATI.
