Tesla is facing a challenge in the second quarter of 2024: the electric car manufacturer’s delivery figures are likely to be lower than expected. Analysts and industry experts are now speculating about the reasons and the potential impact on the market.
No reason for optimism at Tesla
Tesla’s upcoming delivery figures for the second quarter of 2024 are eagerly awaited, but the forecasts are not very optimistic. Analysts have lowered their expectations, raising questions about production efficiency and demand for Tesla’s vehicles. Several factors are expected to contribute to the anticipated weak figures.
For example, Tesla is struggling with production problems at some of its plants. This in turn is leading to noticeable delays in the production of vehicles. On top of this, Tesla is suffering from a noticeable drop in demand. This development can be observed in several markets, which naturally has a negative impact on delivery figures.
The increasing pressure from competitors should also not be forgotten. More and more electric cars are coming from China in particular, which are following in the same vein as Tesla. The Xiaomi SU7 in particular, which is due to go on sale this year and is already in high demand, is likely to further intensify this effect.
Analyst opinions and market reactions
Based on the manufacturer’s poor outlook, UBS analysts have revised their forecasts for Tesla’s deliveries in the second quarter downwards. The expectation is now around 420,000 vehicles delivered, which is significantly lower than previous estimates. This adjustment led to a fall in the Tesla share price of around 5%.
And this could be just the beginning. If the delivery figures actually continue to plummet, the share price could fall even further. The falling demand continues to tarnish Tesla’s image. The manufacturer is still regarded globally as the epitome of electromobility. Many experts even see Elon Musk’s company as a pioneer for the success of the electric car market.
A loss of market dominance would naturally shake this positive image. To get out of the current “hole”, the company will have to rethink. This will force Tesla to adapt its own corporate strategy. It is possible that we can expect a continuation of the tough cost-cutting measures that have already manifested themselves in the large wave of redundancies.
Sources:
t3n
Finanzen.at
marketwatch.com
