Shares of electric-vehicle giant Tesla, Inc. TSLA fell in premarket trading on Wednesday, extending losses after declining in each of the past three sessions.
The stock fell nearly 5% to $166.63 on Tuesday after it reported its first year-over-year sales decline since the second quarter of 2020. While the median company-compiled consensus called for deliveries of 431,000 units for the quarter, the Elon Musk-led company could manage to report sales of just 386,810 EVs.
The company blamed the shortfall on slow production ramp-up as the Fremont factory transitioned to Model 3 refresh production and supply challenges in Europe. Musk, meanwhile, said in a post that it was a challenging quarter for everyone in the industry.
Deepwater Asset Management‘s Gene Munster commented on the numbers, saying Tesla caught analysts off guard with the dismal numbers and he doesn’t see a reprieve in the near term. He believes the stock could fall further in the short-term, but sees comparisons becoming easier in the second quarter of 2025, with the stock potentially reflecting this by mid or late 2024.
Among the sell-side analysts:
- Deutsche Bank maintained its Buy rating and $200 price target.
- CANACCORD Genuity maintained a Buy rating and a $234 price target.
- Baird maintained an Outperform rating and reduced the price target from $300 to $280.
- Oppenheimer reiterated its Perform rating.
Future Fund’s Gary Black said Tesla analysts will likely reduce their 2024 volume and adjusted earnings per share estimates. “But fundamentals (volume and EPS revisions) remain very negative, which will likely keep the stock in the $150-$180 range, even with significant advancements in Full Self-Driving technology,” he said.
In premarket trading on Wednesday, Tesla fell 1.04% to $164.90, according to Benzinga Pro data.
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