Wall Street analysts are expressing concerns over Tesla's first-quarter delivery numbers, with several major firms predicting a decline in the electric vehicle (EV) maker's performance. Morgan Stanley, Wedbush Securities, and Deutsche Bank are among those anticipating a drop in Tesla's deliveries for Q1. Analysts' consensus estimates suggest a figure of 477,000 deliveries for the quarter, although UBS has revised its estimate down to 432,000. Another survey of analysts conducted by Bloomberg indicates an average estimate of 453,964 vehicles for Q1, representing a more than 6% decrease from the previous quarter.
Deutsche Bank has adjusted its delivery forecast from 427,000 to 414,000, while Wedbush analysts have described the Q1 deliveries as a 'nightmare quarter for Tesla.' The challenges faced by the company include supply issues such as factory downtimes and the recent fire at its Berlin facility. The analysts highlighted that this quarter has been particularly challenging for Tesla and its CEO, Elon Musk.
Tesla's stock has experienced a significant decline of around 30% since the beginning of the year, and the company has been downgraded by multiple Wall Street firms. Wedbush Securities' managing director referred to Tesla's current situation as a 'code red' scenario, emphasizing the difficulties the company is facing in China in terms of demand.
Competition in the EV market has intensified, with Tesla losing its position as the world's top EV seller to Chinese company BYD earlier this year. This has led to a price war between the two companies as they vie for market share. Despite these challenges, Tesla has been promoting its autonomous driving capabilities, offering a free month-long trial of its Full Self-Driving software, which is available as a $12,000 add-on or for $199 per month. This move is seen as a potential strategy to boost profit margins and enhance the software's performance.
