Tesla Inc. (NASDAQ: TSLA), a trailblazer in electric vehicle production, continues to captivate the investment world with its dynamic business model and innovative automotive solutions. Analysts at Wolfe Research recently provided an insightful update into the factors likely to influence Tesla’s stock performance through 2024, noting both improvements and prevailing uncertainties.
The firm’s latest analysis hinges on several critical factors, with new vehicle deliveries topping the list. Despite positive management comments, Wolfe Research projects a slight decline in deliveries for 2024, estimating about 1.75 million vehicles, marking a 2% decrease from 2023. This forecast considers the initial quarterly performance extrapolated across the year, adjusted for expected seasonal boosts, particularly from markets like China and North America.
Cost management emerges as another pivotal aspect. The analysts commend Tesla for its adept cost reduction strategies observed in the first quarter. Such financial prudence is anticipated to continue bolstering the company’s fiscal health, even as it scales up operations.
A significant focus remains on the ramp-up of the Cybertruck, Tesla’s much-anticipated model, which combines rugged capabilities with futuristic aesthetics. Wolfe Research anticipates the production of 55,000 Cybertruck units in 2024, escalating to 125,000 by 2025. However, the firm tempers expectations regarding immediate profitability due to the high costs associated with its large battery pack and complex manufacturing processes.
Operating expenses for Tesla are expected to stay relatively steady at around $7.8 billion in 2024. This stability is attributed to the company’s recent workforce adjustments, which are likely to offset increased expenditures tied to advancements in artificial intelligence and operational enhancements.
The analysis also touches on strategic initiatives like the expanded deployment of Full Self-Driving (FSD) technology and the exploration of new markets in Europe and China. Additionally, the initiation of robotaxi services could provide fresh revenue streams and prove critical in demonstrating Tesla’s technological leadership and market adaptability.
Despite these optimistic elements, Wolfe Research cautions investors about the lingering uncertainties surrounding Tesla’s future performance. Key indicators such as the acceptance rate of advanced technologies and market penetration in new regions will be essential in shaping the company’s trajectory.
