In late pre-market action the stock is down $18.03 (-8.68%) at $189.80.
First up, from ZeroHedge's "Tesla disqualified from Magnificent 7...?" post:
....GS on TSLA
1. "While we continue to believe that Tesla is well positioned for longer-term growth given its leading position in the EV and clean energy markets, we believe that slower growth over the near to intermediate term both in terms of vehicle deliveries and EPS will be an overhang on the stock"
2. "We lower our EPS estimates, and maintain our Neutral-rating on the stock. We could be more positive on the stock if Tesla were closer to ramping a vehicle with the third generation platform at the $25-$30K price point"
3.Lower 2024/2025 EPS estimates including SBC to $2.45/$4.40 from $3.20/$5.10. PT 220.
MS on TSLA
"NET NET a miss as expected but likely no worse than feared with gross margin ex credits coming in ahead of expectations along with FCF while overall gross margins were inline. Forward commentary points to slower volume growth but also not likely much of a surprise. All in probably no worse than feared" (Morgan Stanley)
EV oversupply
Redburn Atlantic: "... a market heading towards an oversupply of more than 1 million units over the next two years. This represents nearly 10% of EV sales volume and exerts pricing pressure."
Source: Redburn Atlantic
And from Reuters, January 24:
Tesla CEO Musk: Chinese EV firms will 'demolish' rivals without trade barriers
Finally, from Barron's, January 25:
Tesla Stock Is Down After Earnings ‘Train Wreck.’ Wall Street Is Cutting Target Prices.
Tesla reported worse-than-expected fourth quarter earnings. Volume guidance for 2024 was vague. Shares are down and now Wall Street is weighing in.
Tesla stock is set to have a tough Thursday after the company reported worse-than-expected fourth-quarter earnings. Vague volume guidance for 2024 isn’t helping either.
Now Wall Street is weighing in after digesting the fourth quarter report. Analysts weren’t impressed. Some are cutting price targets for Tesla stock following the earnings report.
Wednesday evening, Tesla reported earnings per share of 71 cents. Wall Street was looking for 73 cents. What’s more, Tesla management said automotive sales growth in 2024 would be substantially below 2023.
They weren’t more specific than that. Vehicle sales grew almost 40% year over year in 2023, hitting 1.8 million units. Wall Street expects 2.1 million to 2.2 million units for 2024, up about 20%. That growth rate is below the 40% rate of 2023, but analysts would have felt better if Tesla guided to a firm number.
“We were dead wrong expecting Musk and team to step up like adults in the room on the call and give a strategic and financial overview of the ongoing price cuts, margin structure, and fluctuating demand,” wrote Wedbush analyst Dan Ives in a Thursday report. “Instead we got a high-level Tesla long-term view with another train wreck conference call.”
The “train wreck” had Tesla stock down almost 8% in premarket trading. S&P 500 and Nasdaq Composite futures were both roughly flat.
Ives still rates Tesla shares Buy, but he cut his price target to $315 from $350 a share. RBC analyst Tom Narayan rates shares Buy too. He cut his target price a more modest $3, to $297 from $300 a share after the Tesla earnings call....
