Tesla Stock Surge Faces Challenges Amid Potential Sales Decline
Tesla’s stock excitement meets skepticism as annual sales may drop
Tesla, Stock, Sales, Musk, EV, Market, 2024, China, Ford
Bloomberg: So, there’s a lot of buzz about Tesla, especially with Trump back in the spotlight. But Wall Street is a bit cautious about whether Tesla can dodge its first annual sales drop in over ten years.
Analysts think Tesla might deliver around 510,400 vehicles in the last quarter of the year. That would be a record for them, but they need to sell a few more cars to keep their growth forecast for 2024 alive.
All eyes are on Tesla’s production and delivery numbers coming out on January 2. The company has seen its market value soar, but a sales dip could make investors rethink their bets.
Trump’s policies could be a mixed bag for Tesla. While there’s hope for new rules on self-driving cars, there’s also talk of cutting electric vehicle subsidies, which could hurt Tesla’s bottom line.
Gene Munster, an investment expert, says Tesla’s fourth-quarter deliveries are a total mystery. He’s worried that Musk’s shift towards Trump supporters might alienate some of Tesla’s traditional buyers. But he also thinks that if tax credits disappear, it could boost sales.
Musk believes Tesla is in between two growth phases. The first wave kicked off with the Model 3, followed by the popular Model Y. But now, the company is feeling the pinch from a slowdown in the global EV market.
While companies like BYD in China are doing well, they’re leaning on hybrids. Other big names like Volkswagen and Mercedes are scaling back their EV plans for the next few years.
In the U.S., Ford is facing a tough time with its electric vehicles, expecting a $5 billion loss. Meanwhile, Honda and Nissan are considering teaming up to tackle EV tech together.
Despite all this, Musk is optimistic about 2025. He thinks Tesla could see a 20% to 30% sales increase next year, especially with new affordable models on the way.
Analysts believe Tesla might roll out cheaper versions of the Model 3 and Y, thanks to some cost-cutting measures. They’ve already started offering great deals to attract buyers.
However, some experts think Musk’s sales growth predictions might be a bit too ambitious. They see challenges ahead, like a stronger dollar and lower oil prices, which could slow down EV sales.