EV maker Tesla (TSLA) is expected to report a slowdown in vehicle delivery numbers when it updates the market later this week.
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New trading tool for TSLA bearsDeliveries Down on Last Quarter
According to a Reuters report, first-quarter deliveries are expected to be lower than in the December quarter as the Elon Musk-led giant struggles with uneven consumer demand and intensifying competition in key markets.
Analysts polled by Visible Alpha expect Tesla to announce tomorrow that it delivered about 368,900 vehicles in the January to March period, representing a decline of 11.8% from the previous quarter. The average of the the 23 estimates compiled by Visible Alpha was 365,645 units.
Intensifying competition in Europe, despite good French numbers for Tesla reported today, and China, as well as the scrapping of the $7,500 federal tax credit in the U.S. on EV purchases last September are also expected to have weighed on consumer demand.
Tesla’s Broader Ecosystem
However, the 368,900 level would be up 9.6% on the same period last year, when Musk’s involvement in the Trump administration and his flirtation with right-wing politics damaged the Tesla brand. Car fans have also been critical of the design of its vehicles compared to more snazzy-looking rivals.
If Tesla was still only focused on EVs, these figures would have been a huge concern to Musk. However, the company has substantially broadened its reach and ecosystem in recent months to take in solar energy, humanoid robots and self-driving robotaxis. Elsewhere in the Musk empire the focus is on SpaceX and its upcoming mega-IPO.
Despite this, investors will still want Tesla to stay on the right track with its EV ambitions.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 13 Buy, 11 Hold and 7 Sell ratings. Its highest price target is $600. TSLA stock’s consensus price target is $395.31, implying a 6.34% upside.
