Wedbush Securities analyst Dan Ives shared his Tesla (TSLA) Q1 2024 delivery estimates on X. He predicts a demand issue after a “nightmare” quarter for Tesla China.
Ives forecasts that Tesla will report a delivery between 425,000 and 475,000 units in the first quarter. He explained that Tesla dealt with a “perfect storm this quarter.
Tesla reportedly trimmed its production output at Giga Shanghai recently. According to local reports, Tesla is reducing its production output to match Giga Shanghai’s manufacturing levels with demand in the Chinese electric vehicle (EV) market, which has many competitors. The EV automaker cut working days from 6.5 to 5 days a week as part of its objective.
1Q has been a nightmare quarter for Tesla as China demand remains very soft. 1Q delivery estimates 475k to 425k as Tesla saw a perfect storm of demand issues hit this q. Lowering PT to $300; Musk must steer Tesla thru this white knuckle period. Remain bullish, but seatbelt is on
— Dan Ives (@DivesTech) March 27, 2024
In February, data from the China Passenger Car Association (CPCA) revealed that Tesla China sales declined. Last month, Tesla China sold approximately 60,365 units, representing an 18.8% year-over-year decrease compared to February 2023.
Despite Tesla China’s challenges this quarter, Dan Ives remains bullish on TSLA. However, he remains cautious. The Wedbush analyst lowered his TLSA price target to $300.
Morgan Stanley analyst Adam Jonas shared sentiments similar to Dan Ives’s. The investment bank reduced its Tesla Q1 2024 delivery estimates from 469.4k to 425.5k. Jonas reiterated his Overweight rating for TSLA and maintained his price target of $320.
Adam Jonas predicts that Tesla will increase prices and implement some cost-cutting measures to compensate for its performance in the first quarter. Despite his Tesla Q1 2024 forecast, Jonas sees potential in the company’s growth thanks to its recent collaboration with CATL in its Giga Nevada expansion.
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