Deutsche Bank (ETR:DBKGn)'s Emmanuel Rosner has issued a warning about potential shortfalls in Tesla (NASDAQ:TSLA) Inc.'s third-quarter targets and significant downside risk in 2024. The anticipated miss is attributed to Tesla's global downtime for Model 3 EV upgrades and halted expansion plans at the Austin and Berlin factories. These factors are expected to result in a reduced delivery forecast of 2.1 million vehicles for 2024.
Rosner has subsequently downgraded TSLA's stock price target to $285, reflecting recent market trends also acknowledged by Baird's Ben Kallo. According to InvestingPro data, Tesla's stock has experienced significant growth this year, surging 98.18% year-to-date. Tesla's market cap stands at a staggering $764.08B USD, and its P/E ratio is 62.42, indicating high valuation levels.
The warning from Deutsche Bank comes amid a broader context of concerns over restrained growth for the electric vehicle manufacturer. As it stands on Wednesday, Tesla continues to navigate these challenges while maintaining a robust year-to-date performance. This performance is in line with InvestingPro Tips, which highlight that Tesla yields a high return on invested capital and is consistently increasing earnings per share.
Interestingly, despite the production slowdown, this could potentially ease pricing pressure next year, according to Rosner. The pricing pressure, a new factor considered in Tesla's performance evaluation, could be lessened due to the reduced number of vehicles produced. This aligns with one of the InvestingPro Tips, indicating that Tesla holds more cash than debt on its balance sheet, suggesting the company is well-positioned to weather potential financial turbulence.
For more insights about Tesla's financial health and future prospects, you can explore the additional 19 InvestingPro Tips available. These tips offer a comprehensive view of the company's financial performance and are a valuable resource for investors looking to understand Tesla's position within the Automobile industry.
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