Tesla Stock: 2024 EPS Estimates Are Coming Down. The EV giant is now increasing the prices.

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By journalsofus.com

Tesla (TSLA) announced over the weekend that it will raise US Model Y prices on April 1, while also raising Model Y prices in Europe on March 22. Meanwhile, the global EV giant is currently offering new inventory discounts for Model Y trims in China. Tesla shares rose early on Monday.


The company will raise the price of all Model Y trims in the US by $1,000 next month, while Model Y prices in Europe will rise by about $2,100 on Friday. In China, Tesla is discounting inventory Model Y vehicles between $1,000-$1,500.

The move in pricing comes after Tesla aggressively cut vehicle prices and offered discounts for more than a year to maintain sales momentum. As a result, auto gross margins, which had peaked at 30% in Q4 2021 amid the industry chip shortage, have fallen well below 20%.

Analysts argue that this strategy is not helping demand and is hurting the company. Tesla observers report that inventory is currently quite high and the EV giant’s price hikes do not indicate growing demand.

Troy Teslik, a respected source of delivery estimates and Tesla data tracking among retail Tesla investors, wrote on X, formerly Twitter, on Saturday that the U.S. price increase “is not due to a lot of demand.”

“Based on the latest data, inventory is currently high,” Teslalike posted. “Tesla’s message is to buy now before the surge.”

Tesla is falling, but it’s not getting cheaper. here’s why.

With the first quarter ending in just two weeks, it appears Tesla is headed for a delivery miss. According to FactSet, Wall Street consensus still calls for Q1 deliveries of 487,000 units. However, several analysts have cut forecasts in recent days.

Tesla is expected to report Q1 deliveries in early April.

tesla stock performance

TSLA shares rose 2.7% to 167.81 during market action on Monday. Tesla stock fell 6.7% to 163.57 last week. On Thursday, Tesla stock fell 4.1% to 162.50, hitting a new 2024 low not seen since May 2023. TSLA is down 19% in March.

Wells Fargo last week downgraded Tesla to Underweight from Equal Weight with a price target of $200 to $125. The firm’s Underweight rating is equivalent to a Sell rating and its price cut represents a 23% downside risk to current TSLA levels.

Meanwhile, UBS also cut its Tesla stock price target to 165 from 225 and maintained a neutral rating on the shares last week. UBS cut its Q1 deliveries forecast to 432,000 units from the previous view of 466,000. The company also reduced full-year deliveries to 1.96 million units from 2.02 million earlier.

With 2023 in the rearview mirror, analysts’ consensus now has 2024 Tesla earnings below 2023 levels, signaling another year of negative growth for this growth stock. According to FactSet, Wall Street expects Tesla’s earnings per share to be only $2.97 per share in 2024. This would be a decline of about 5% from last year’s $3.12.

The most recent FactSet “sharp consensus” of analysts pegs 2024 EPS at just $2.62.

Morgan Stanley Tesla bull Adam Jonas recently released an investor note in which he cut his Tesla 2024 earnings estimates by 25%, saying the EV giant could “potentially” lose money this year.

Jonas cut his Tesla price target to $320 from $345, but maintained an Overweight rating on the shares. Jonas also cut his Tesla 2024 EPS estimates to $1.51, his previous view was $2.04 per share, with auto gross profit margin, excluding regulatory credits, falling to 11.4% as the analyst noted continued demand issues for EVs. kept.

The EV giant is ranked eighth in the 35-member IBD Auto Manufacturers Industry Group. The stock has an overall rating of 28 out of the best possible 99. Tesla stock also has a 9 Relative Strength Rating and a 68 EPS Rating.

PLease Follow Kit Norton on X, formerly known as Twitter, @kittenorton For more coverage.

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