Stifel managing director Stephen Gengaro says there are many layers to Tesla and its stock valuation.
Electric vehicle maker Tesla is expected to report its second straight quarterly drop in shipments amid tough competition in China and slower EV demand in the US
The Elon Musk-led automaker is expected to announce its quarterly results on Tuesday and is expected to report deliveries of 438,019 vehicles from April to June, according to an average estimate based on forecasts from 12 analysts polled by LSEG. Seven of the analysts surveyed lowered expectations in the past three months.
| TICKER | Safety | The last | AmENdmENT | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 209.86 | +11.98 | +6.05% |
Tesla’s sales slowdown comes after several years of rapid growth that propelled the EV maker to become the world’s most valuable automaker. The company warned in January that sales growth in 2024 would be “notably lower” as the impact of months of price cuts faded.
Consumers have increasingly turned to gasoline-electric hybrid vehicles, which has left Tesla faced with a growing inventory of vehicles that it is trying to sell through price cuts and other incentives, such as cheaper options. financing and leases.
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Tesla is expected to announce another quarterly decline in sales. (Justin Sullivan/Getty Images/Getty Images)
Tesla saw deliveries decline in the first quarter of this year for the first time in nearly four years, and with another quarterly decline expected in the second quarter, some analysts predict it will post its first annual sales decline this year.
Amid shifting consumer preferences for electric vehicles and fierce competition overseas, Tesla is planning to unveil its robotaxi plans on August 8 as it aims to promote its “Full Self Driving” software. The company has not yet revealed when production will begin or how many of them will be produced.
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Tesla has seen sales decline this year amid an EV price war in China and U.S. consumers turning to hybrids. (Joe Raedle/Getty Images/Getty Images)
Tesla is also planning to introduce new models to its EV lineup, including more affordable options. Musk discussed those plans at a high level on a recent earnings call.
“In terms of the new product roadmap, there’s been a lot of talk about our upcoming vehicle lineup in recent weeks,” Musk said on the company’s earnings call in late April. “We have updated our future vehicle line-up to accelerate the launch of new models ahead of the previously mentioned second half 2025 production start, so we expect it to be more like early 2025 if not later this year.”
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Musk said in April that the company is planning new models that could go into production in late 2024 or early 2025. (Slaven Vlasic/Getty Images for the New York Times/Getty Images)
“These new vehicles, including more affordable models, will use aspects of the next generation as well as aspects of our current platforms and will be able to be produced on the same production lines as our current fleet of vehicles,” added Musk.
“So it doesn’t depend on any new factories or massive new production lines,” he explained. “It will be done on our current production lines much more efficiently and we think this should allow us to reach over 3 million vehicles in capacity when fully realized.”
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Musk did not provide details on the call about a potential price range for the newer vehicles, so it’s unclear whether it will fall at or near the previously discussed $25,000 threshold, or if it will be closer to the Model 3 – offering Tesla’s most affordable. which starts at around $39,000.
Tesla shares are down 24% from a year ago. Its stock is down about 14.5% year-to-date â a figure that accounts for Monday’s rise.
Reuters contributed to this report.