Tesla Stock (NASDAQ:TSLA)
After investors analyzed the electric car manufacturer Tesla’s (NASDAQ:TSLA) Q4 deliveries data, which came in below estimates, the Tesla stock fell 9.10% in early trading on Monday.
Tesla had set a multi-year growth objective of 50%. Still, the final production delivery growth for 2022 came in at 40%, falling short of the goal.
Dan Ives, an analyst at Wedbush Securities, said that the data for TSLA still demonstrate the firm is in the early stages of a vast growth cycle. However, he also emphasized that Tesla is being held to a higher bar on a valuation basis.
“The debate on Wall Street will now rage around the 2023 Street outlook, with deliveries likely to be 35%-40% for 2023. Musk and company need to lay out a more conservative number to hit in this jittery backdrop and rip the band-aid off guidance because Tesla will not report its earnings or guidance for the fourth quarter until January. Tesla’s total demand is showing signs of slowing down. The business will need to adjust and drop costs even more, particularly in China, which is still the most important factor in the growth narrative.”
Ives believes that negative news is already baked into the Tesla stock. Still, he has maintained an Outperform rating on the electric vehicle company.
According to estimates provided by Adam Jonas, an analyst with Morgan Stanley, Tesla finished the fourth quarter with 14 days’ worth of supplies, up from 8 days at the end of the third quarter. He observed that “Tesla’s fourth-quarter deliveries, while slightly higher than we had expected, are broadly consistent with our views that EV supply may be recovering faster than EV demand,” reflecting a material narrative change in the scarcity of electric vehicles on a global basis. Although the firm did not mention it, it is unknown if any prospective Tesla (TSLA) consumers delayed making a purchase to take advantage of the tax benefits associated with IRAs. The company did not mention that as a reason.
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