Tesla’s (NASDAQ: TSLA) moves to lift demand further in the quest to reach even higher sales numbers are being suggested by several Wall Street analysts in new notes to investors.
Tesla is set to report delivery and production numbers for the second quarter either late this weekend or early next week, and the consensus is split among Wall Street analysts who are conflicted with how strong the automaker’s figures will be.
As the EV race heats up, Tesla continues to establish itself as the overwhelmingly clear leader of the sector. Other automakers are even conceding that dealing with Tesla is a necessary step in achieving their own EV goals, as several companies have signed deals to adopt the company’s charging connector and access 12,000 of its North American Superchargers.
Analysts of both Global Equities Research and Bernstein discussed potential demand triggers for Tesla moving forward, and while one firm is convinced job creation in the AI field will help the company sell more cars, the other is unconvinced that Q2 numbers will be as robust as the Street expects.
Global Equities Research says it expects Tesla demand to “recover” as previously laid-off tech workers will be finding new employment due to the AI boom. When the firm asked several of these workers what large purchase they will make when they find work once again, the top answer was “Buy a Tesla.”
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The note also expects normalized demand to be seen once again in Q4, with a slight recovery in Q3.
Meanwhile, Bernstein analyst Toni Sacconaghi believes Tesla’s “demand obstacles” that it has faced in 2023 come from a lack of new car releases.
“Our perspective is that upcoming numbers won’t be great,” he said to CNBC. In his opinion, Tesla will be forced to continue with the price cuts it has used throughout the year to surge sales in order to reach its sales goals.
Additionally, new, lower-priced models from competitors are diluting Tesla’s chances to win sales over other automakers, he said.
“That’s the challenge over the next four to six quarters before we have some new, lower-priced models. That’s our concern: that Tesla will ultimately fall short on deliveries at some point over the next four to six quarters, or that we’re going to see continued price cuts to be able to drive that growth.”
Wall Street is expecting 445,000 deliveries from Tesla in Q2, a 74 percent uptick year-over-year.
Disclosure: Joey Klender is a TSLA Shareholder.
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