Tesla’s Sales Outlook

Investing.com — Tesla Inc (NASDAQ:TSLA) is unlikely to grow annual sales this year, even with price cuts, according to Bernstein, warning of a challenging future for the electric vehicle (EV) manufacturer.

Analyst Insights

In a note released on Wednesday, Bernstein analysts stated, “We think it is unlikely that Tesla will grow units this year even assuming lower prices and/or very favorable financing.”

Tesla reported Q3 deliveries of 435,059, falling short of Wall Street estimates of around 461,000. The analyst predicts Tesla will deliver about 1.8 million units in 2024, below the company’s target of 2 million, indicating flat growth year-over-year.

Market Expectations

Though Tesla plans to introduce lower-priced vehicles starting production in H1 2025, the analysts believe these changes will not significantly boost demand. The anticipated Model 2, expected before 2026, is also seen as unlikely to impact sales significantly.

Investor focus has shifted from delivery updates to the company’s robotaxi initiative, but Bernstein warns that Tesla faces strong competition and significant regulatory challenges.

They noted, “Tesla is behind in gaining regulatory approval for robotaxis…and it may be difficult to overcome without local, ongoing trials,” just days before Tesla’s robotaxi event scheduled for October 10.

Future Challenges

Looking forward, Bernstein indicates that Tesla will likely continue facing similar challenges with an aging product lineup and increasing competition, reinforcing their underperform rating on the stock.