Deutsche Bank has revised Tesla Inc (NASDAQ:TSLA) third quarter delivery estimates, projecting potential shortfalls in production due to global plant upgrades and Project Highland.
Analysts now predict deliveries of 440,000 units during 3Q, marking a 6% decrease from their previous estimate of 455,000 units.
In a client note, analysts voiced concerns about 2024, highlighting significant downside risk to earnings expectations due to a lower volume outlook than the market currently anticipates. The bank sees Tesla guiding for approximately 2.1 million deliveries in the following year, notably below the market consensus of 2.3 million deliveries.
Despite these near-term concerns, analysts acknowledged a potential silver lining for 2024. With the company easing off volume pushing, there could be reduced pricing pressure, offering a positive aspect amidst the challenges.
Additionally, Deutsche Bank trimmed 3Q revenue estimates by approximately $800 million to $23.3 billion, and adjusted EPS estimates to $0.71 from the previous $0.87.
That led to a price target cut on Tesla stock to $285 per share, a decrease from the previous target of $300.
However, the investment bank remains optimistic about Tesla's long-term prospects, citing their confidence in the company's next-gen platform. Deutsche Bank is keeping its Buy rating on Tesla stock.
Shares of Tesla were down 1.1% in midday New York trading on Wednesday.