) is poised to release its earnings report, a crucial event that will shed light on the company's financial performance. With Tesla grappling with several challenges, the current sentiment for Tesla stock is not optimistic.
Last week, analysts at Deutsche Bank downgraded Tesla to Hold from Buy, lowering the stock price target to $123 from $189 per share. The investment bank highlighted the fact that it has been warning investors about downside risk to Tesla’s deliveries, pricing and earnings through 2025. “TSLA's positive guide is also at risk.We est. ~160K cars could be in inventory, adding to px risk. Low leasing also raises concerns,” added the bank. “We see moderating delivery growth driven by lower demand & diminished return on price cuts. We are cautious on margins given likelihood of more price cuts & lower volumes. Moreover, we are concerned about Model 2 demand & margins.
“Our current $1.12 EPS is well below consensus for non-GAAP FY24. And no, we do not suggest that we have ‘kitchen-sinked’ our forecasts this year,” said Morgan Stanley analyst Adam Jonas. “At a volatile time for the company’s operations, we believe $1.12 has roughly balanced probabilities of either upward or downward revisions.”