LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LondonWallet
No Result
View All Result

Tesla gets a sell rating ahead of earnings on concern about EV oversupply

Chaim Potok by Chaim Potok
January 24, 2024
in Investing
Tesla gets a sell rating ahead of earnings on concern about EV oversupply
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


Tesla may be stuck in “production purgatory” that could pressure the stock, according to Redburn Atlantic. The firm initiated coverage of Elon Musk’s electric vehicle maker on Wednesday with a sell rating and a $170 per share price target. That forecast points to nearly 19% downside from Tuesday’s close. Analyst Adrian Yanoshik said the company is contending with broader challenges afflicting the EV sector, including an oversupply of vehicles as well as an increase in capital needs — despite Tesla retaining “its technical leadership in electrical architectures.” “We identify a widening gap between expectations and the margin and [free cash flow] challenges faced by slowing near-term growth,” Yanoshik said. “Pricing — amid increasingly oversupplied EVs — will dominate any margin benefit from lower commodity prices in the coming quarters, in our estimation.” EV sales began slowing in 2023 as consumers and businesses signaled caution toward going fully electric. The trend has continued into the beginning of 2024, with car rental company Hertz announcing earlier in January plans to sell off roughly one-third of its EVs from its fleet. The analyst added that Tesla will continue to focus on growing vehicle volume over margin expansion, while also spending heavily to invest in artificial intelligence and to bring EV capacity up to speed with future new vehicle launches. This will likely add pressure to free cash flow, he added. He also added that efficiency gaps persist between Tesla “and most mass-market and premium brand vehicles, as measured in range per unit of battery capacity,” the analyst said. The companies that will benefit most in the new EV landscape, the analyst added, will “iterate best-in-class EV platforms and scale desirable models to support high utilization at lower unit costs.” Tesla has been in a slump to start 2024, losing about 16%. It has also trailed its “Magnificent Seven” peers including Apple and Nvidia. TSLA YTD mountain Tesla stock YTD The company will report fourth-quarter results after the bell Wednesday, with Wall Street analysts likely focusing on the company’s vehicle deliveries throughout the quarter as well as the Cybertruck’s performance. Analysts polled by FactSet forecast 73 cents per share in earnings on revenue of $25.6 billion.



Source link

You might also like

Wednesday’s big stock stories: What’s likely to move the market in the next trading session

Oil’s wild moves created historic trading in this ETF, and a warning for retail investors

Goldman says size of Tesla’s move Monday on robotaxi launch doesn’t make sense, stays neutral

Share30Tweet19
Previous Post

Deutsche Bank downgrades Netflix, says all the good news is priced into stock

Next Post

Another NATO country prepares for war with Russia warning we have ‘perhaps three years’

Chaim Potok

Chaim Potok

Recommended For You

Wednesday’s big stock stories: What’s likely to move the market in the next trading session
Investing

Wednesday’s big stock stories: What’s likely to move the market in the next trading session

June 25, 2025
Oil’s wild moves created historic trading in this ETF, and a warning for retail investors
Investing

Oil’s wild moves created historic trading in this ETF, and a warning for retail investors

June 24, 2025
Goldman says size of Tesla’s move Monday on robotaxi launch doesn’t make sense, stays neutral
Investing

Goldman says size of Tesla’s move Monday on robotaxi launch doesn’t make sense, stays neutral

June 24, 2025
Tim Seymour reveals global ‘Mag 7’ for U.S. investors as international markets outperform
Investing

Tim Seymour reveals global ‘Mag 7’ for U.S. investors as international markets outperform

June 24, 2025
Next Post
Another NATO country prepares for war with Russia warning we have ‘perhaps three years’

Another NATO country prepares for war with Russia warning we have ‘perhaps three years’

Related News

Controversial MSG sphere greenlighted for East London

Controversial MSG sphere greenlighted for East London

January 27, 2023
Hamas urges the Arab world to join the conflict and Turkey ‘are making preparations’

Hamas urges the Arab world to join the conflict and Turkey ‘are making preparations’

November 9, 2023
Zhao pledges BNB for Thailand, Myanmar disaster relief

Zhao pledges BNB for Thailand, Myanmar disaster relief

March 28, 2025

Browse by Category

  • Business Finance
  • Crypto
  • Industries
  • Investing
  • Markets
  • Opinion
  • Real Estate
  • UK

London Wallet

Read latest news about finance, business and investing

  • Contact
  • Privacy Policy
  • Terms & Conditions

© 2025 London Wallet - All Rights Reserved!

No Result
View All Result
  • Checkout
  • Contact
  • Home
  • Login/Register
  • My account
  • Privacy Policy
  • Terms and Conditions

© 2025 London Wallet - All Rights Reserved!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?