Both Piper Sandler and Jefferies analysts see Tesla's (NASDAQ:TSLA) 2024 sales declining following last week's disappointing first-quarter delivery numbers.
Analysts at Piper Sandler maintained an Overweight rating but cut their price target for Tesla to $205 per share from $225 per share.
In a research note, the firm told investors that they now expect 1.799 million deliveries in 2024, a decline of 0.5% year over year. Automotive revenue fell even faster, declining 3.3% YoY due to price cuts and lower revenue from leasing and regulatory credits.
The firm said it cut its estimates and DCF-based price target to reflect weaker-than-expected Q1 deliveries, as well as a challenging demand outlook in 2024/2025.
However, the firm still thinks TSLA warrants a place in clients' portfolios, especially for growth-oriented investors who are eager to take advantage of sell-offs in the coming few quarters. In no small part, their long-term optimism is due to FSD software.
Analysts at Jefferies cut its Tesla full-year deliveries forecast by 13% to 1.77 million units, representing a 3% decline YoY. They also lowered their revenue forecast for the electric vehicle company by 15% to $94.1 billion and EBIT to $6.5 billion.
There are recurring questions about product priorities and leadership at Tesla, according to the firm.
"Q1 cash burn should be heavily negative although not enough to doubt Tesla's ability to fund the ventures that support current multiples," said Jefferies. "The upcoming AGM could be a catalyst for compensation, board responsibility and Mr Musk's role."
The firm maintained a Hold rating on the stock but cut the Tesla price target to $165 from $185 per share.