Tesla’s stock value experienced a significant drop, exceeding 9% following the Q4 and FY 2023 earnings call. The company indicated a tempered growth forecast for the year due to a shift in focus to developing a new vehicle platform, which led to a lack of clear guidance for 2024, causing concern among analysts.
Record Sales Yet Conservative Growth Expectations
Despite achieving record vehicle sales in 2023, with a nearly 40% increase and over 1.8 million units sold globally, Tesla has projected that its growth rate will be significantly lower than the previous year’s. This projection appears cautious compared to Wall Street‘s anticipation of 2.1 to 2.2 million vehicle sales in 2024.
Analysts Adjust Price Targets and Maintain Optimism
Analysts from Wedbush and RBC expressed disappointment with the earnings call, citing a lack of detailed financial and strategic guidance. Following the call, Wedbush’s Dan Ives revised his price target for Tesla from $350 to $315, despite maintaining a bullish outlook. RBC’s Tom Narayan also lowered his target slightly but commented on the potential delay in the impact of Tesla’s next-generation vehicle platform on the company’s financials.
Morgan Stanley’s Adam Jonas noted the absence of specific guidance during the call but retained an “Overweight” rating with a $345 price target. Meanwhile, Canaccord expressed a need for investor patience and a bullish stance on Tesla’s long-term potential, despite lowering its price target.
Deepwater Asset Management’s Gene Munster highlighted a positive aspect from the earnings report, pointing out an end to the consecutive quarters of margin decline, with auto gross margins slightly below expectations but showing an improvement from the previous quarter.
