Wolfe discusses key swing factors for Tesla stock

-

Analysts from Wolfe Research recently highlighted several pivotal factors influencing Tesla's (NASDAQ:TSLA) stock, emphasizing an improved outlook tempered by lingering uncertainties.

Among the key swing factors, new vehicle deliveries feature prominently. Despite management's optimistic remarks, Wolfe Research projects 2024 deliveries to dip compared to 2023, estimating around 1.75 million units or a -2% year-over-year decline. The firm extrapolates a run-rate of 1.55 million units based on Q1 deliveries, with anticipated seasonal boosts of approximately 65,000 units, particularly in China and North America.


Cost reductions also play a critical role. The investment firm acknowledges Tesla's effective execution of cost-cutting measures in the first quarter.

Wolfe Research maintains expectations for a gradual Cybertruck ramp-up, forecasting 55,000 units in 2024 and 125,000 in 2025. While pricing is anticipated to remain elevated, profitability isn't expected until later in the year, with a projected production ramp to a 125,000-unit run-rate. However, long-term profitability for the Cybertruck is anticipated to lag behind Tesla's other products due to its larger battery pack and complex manufacturing process.





Operating expenses are projected to remain relatively flat in 2024 compared to the previous year, hovering around $7.8 billion. This stability is attributed to recent headcount reductions offsetting investments and operating costs linked to AI initiatives.

Despite the improved outlook from a few weeks ago, analysts caution against complete certainty, citing key areas of uncertainty. They highlight rising take rates, the expansion of Full Self-Driving (FSD) deployment in new markets like Europe and China, and the initial rollout of robotaxi services as crucial proof-points for Tesla's trajectory. 

Comments

Post a Comment

Popular posts from this blog

Pregnant Hailey Bieber expecting first child with Justin Bieber

-
Image
  Hailey Bieber, formerly known as Hailey Baldwin, has captivated the world with her grace, style, and charisma. As a model, she's graced the covers of prestigious magazines and walked the runways of renowned fashion houses. However, her latest role transcends the glitz and glamour of the fashion world. Hailey Bieber is embarking on a journey of motherhood, expecting her first child with her husband, Justin Bieber. The announcement of Hailey's pregnancy sent waves of joy and excitement through the Bieber fandom and beyond. Fans eagerly awaited the news, speculating about when the power couple would expand their family. Now, as Hailey's baby bump becomes more evident, the couple's joy is palpable, and the world eagerly watches as they prepare to welcome their bundle of joy. For Hailey and Justin, the journey to parenthood has been one of love, growth, and reflection. Their relationship has been under the scrutiny of the public eye since they tied the knot in 2018. Despit
Read more

AstraZeneca to withdraw COVID-19 vaccine globally, Telegraph reports

-
Image
  In a significant development in the global fight against the COVID-19 pandemic, AstraZeneca, one of the leading pharmaceutical companies, has announced its decision to withdraw its COVID-19 vaccine globally. According to a report by The Telegraph, this decision marks a pivotal moment in the vaccine distribution landscape, raising questions about its impact on global vaccination efforts, public health strategies, and the broader quest for pandemic control. The withdrawal of the AstraZeneca vaccine, developed in collaboration with the University of Oxford, comes amidst mounting concerns over rare but serious side effects associated with the vaccine, including blood clotting disorders. While the vaccine has been instrumental in vaccination campaigns worldwide, its rollout has been marred by safety concerns, leading to regulatory scrutiny and public apprehension. The decision by AstraZeneca to pull its vaccine from the global market reflects the company's commitment to prioritizing s
Read more

Pauly Shore ‘Was Up All Night Crying’ After Richard Simmons Said ‘I Don’t Approve’ of Biopic, Asks for Meeting as ‘You Haven’t Even Heard the Pitch’

-
Image
  Pauly Shore took to Instagram to share his emotional response after learning of Richard Simmons' continued disapproval of the biopic based on the fitness icon's life, in which Shore is set to star. Simmons had recently disclosed on social media his intentions to explore his own biopic with major studios. Expressing his dismay, Shore referenced Simmons' tweet, stating, "I was up all night crying regarding Richard Simmons’ tweet." He questioned Simmons' disapproval, asserting his suitability for the role, saying, "I mean, really, who’s better to play you in a movie than ME?" Shore emphasized that Simmons hadn't even heard the pitch for the biopic penned by Jordan Allen-Dutton and expressed a desire to meet to discuss further details. In response to Simmons' plans for his own biopic, Shore conveyed support, remarking, "That’s amazing! The more movies about you, the better!" He drew parallels to other biopics made without the subject&
Read more