Tesla Inc (NASDAQ:TSLA, ETR:TL0) is set to experience lower deliveries in the first quarter of 2024 as both demand and production slows, analysts at UBS believe.
First-quarter deliveries are expected to come in at 432,000, down from estimates of 466,000 and 10% below market consensus of 477,000, the Swiss bank said in a new research note.
UBS revised its estimates lower due to weakened EV demand in the US and Europe and slower production in North America and Europe because of a power outage.
Full-year delivery forecasts have therefore also been downgraded by the bank’s analysts, who expect 1.96 million, down from previous predictions of 2.02 million and 5 lower than Wall Street guidance.
UBS’ earnings per share forecasts were reduced to US$0.42, 32% lower than the market’s guidance of US$0.64.
Tesla’s full-year EPS is predicted to be US$2.92 according to Wall Street, but UBS reckons this figure will be closer to US$2.32.
Based on these updates, UBS has downgraded Tesla’s target price from US$225 to US$165, while maintaining a ‘neutral’ rating.
Shares in Tesla are trading at US$162 on Thursday, having suffered a 34% slump since the start of the year.
On Wednesday, Tesla shares slumped after analysts labelled it a “growth company with no growth”.
Musk’s electric vehicle business saw its stock rating downgraded to the equivalent of a “sell” rating by Wells Fargo, leading to it shedding more than £11 billion in market value and taking the share price to the lowest point since May.