Written by Cláudio Afonso | [email protected] | LinkedIn | X
On Tuesday, Tesla reported production and delivery numbers for the first quarter of the year with disappointing figures as the consensus from the analysts were around 430,000 units.
In a new research note, Deutsche Bank upheld its Buy rating on Tesla shares and reaffirmed the $200 price target set in late March, which was previously adjusted from $218. However, the firm expressed concerns regarding the disparity between the produced and delivered figures.
Deliveries totaled 386,800 vehicles, while production reached 433,000, significantly below even the most conservative estimate of 414,000 deliveries by Deutsche Bank. According to the firm, this discrepancy indicates a potential inventory buildup of 46,000 units, suggesting deeper issues beyond production bottlenecks, possibly indicating a substantial demand problem.
The firm attributes the delivery miss primarily to demand challenges in the U.S. market. Furthermore, they anticipate downside risks to gross margin expectations due to the lower-than-expected volume. Despite Tesla’s recent price increases in the U.S. and China, Deutsche Bank suggests the company may need to reconsider, which could further pressure selling prices for the remainder of the year.
Tesla will report its financial results for the first quarter of 2024 after market close on Tuesday, April 23rd followed by the conference call.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
