Tesla's Q1 Sales Could Hit All-Time Low
Tesla is going through a tough time, with experts warning that the company's stock could lose nearly 50% of its value, while JP Morgan lowered its price target on Tesla to $120.
Major Decline in Sales
Tesla's sales figures are likely to fall well short of estimates for the first quarter. JP Morgan has downgraded the company's estimated 444 deliveries to 355. This figure falls far short of both previous estimates and the general expectation of 430 units. If these estimates come true, Tesla's sales will be percent 8 will show a decrease in the rate.
Tesla’s global delivery figures are being affected, with sales in Norway in particular down 44,4% in January and February, and in Germany down 70,6%. Other markets like China and Australia are also seeing similar declines.
Musk’s Political Ties and the Rising Backlash
JP Morgan says Elon Musk’s political engagements have negatively impacted Tesla’s brand perception. Analysts say,Musk's work at the State Department of Productivity has sparked controversy, and it's hurting Tesla sales“ They comment. These reactions are not limited to sales; showroom protests and vandalism against Supercharger stations are also on the rise.
Stock Value Loss Continues
Tesla shares on Monday %5 has fallen further, losing eight weeks in a row. According to Business Insider, the company's market value has fallen by about %49 According to information received from Fortune, JP Morgan analyst Ryan Brinkman, "We are hard pressed to find a similar example in the history of the automotive industry where a brand has lost value so quickly." he comments.
Challenges and Increasing Competition in China
Tesla plans to offer a free trial of its Full Self-Driving (FSD) software in China from March 17 to April 16. However, the move does not strengthen the company’s long-term position against Chinese regulations and local competitors. Tesla has struggled to compete with advanced autonomous driving systems from brands such as BYD, Xpeng and Xiaomi in the Chinese market. China’s data privacy laws also prevent Tesla from sending important data to the US.
Mizuho’s Target Price Drop and Market Reaction
Mizuho analysts lowered Tesla's target price from $515 to $430. After this change, the stock lost 5% to close at $238. Mizuho says Tesla is struggling due to weakening demand in the US, China and Europe, and the company has lowered its 2024 delivery forecast from 2,3 million to 1,8 million.
Wedbush Securities analyst dan ives, "Tesla investors are losing patience as Musk fails to read the situation“He summarizes the situation by saying. Tesla shares have lost about half of their value since their December peak of $479,86. Analysts have an average target price of $318,22, although estimates range from $550 to $24,86.
