Tesla's 2024 H1 Results May Underperform
- Tesla's 2024 H1 results may not meet expectations
- Tesla might implement price reductions to protect margins
- Analyst revises Tesla share price target to $320
Morgan Stanley anticipates that Tesla's first-half results for 2024 may not meet expectations due to a decrease in the demand for electric vehicles. The firm suggests that Tesla might implement price reductions to safeguard its margins and cash flow in light of diminishing profitability. Consequently, Morgan Stanley has adjusted its GAAP EPS forecast for Tesla for FY2024.
Analyst Adam Jonas has revised his price target on Tesla shares from $345 to $320. He has also modified his 2024 volume and earnings predictions for the company, indicating that Tesla might report a loss this year based on GAAP accounting.
The decline in EV demand is further exacerbated by companies removing EVs from their fleets and the rise of hybrids as competitors to EVs. These elements are projected to influence Tesla's market performance.
Morgan Stanley has voiced concerns about Tesla's vulnerability to the slowing demand for electric vehicles. This could potentially affect Tesla's 2024 earnings and decrease its free cash flow. The firm predicts Tesla's first-half results to fall short of profitability expectations, with a lower volume and more drastic price cuts expected to diminish Tesla's auto gross margin in 2024.