Citi sees below-consensus Q2 deliveries for Tesla

Published 12/06/2024, 12:24
© Reuters

Citi analysts anticipate Tesla (NASDAQ:TSLA)'s Q2 deliveries to fall short of market expectations, estimating around 400,000 units compared to the consensus of 444,000.

"Q2 demand appears to be running below our estimate in Europe and U.S.," states Citi. While China seems to be performing above expectations, Citi believes overall consensus figures remain too high.

The key factor to watch, according to the bank, is whether Tesla sheds light on its new, affordable electric vehicles announced in Q1. Positive updates could shift the narrative away from near-term headwinds. However, a lack of information could lead to further estimate cuts for Tesla.

Looking ahead, they view Tesla's upcoming "RoboTaxi Day" in August as a pivotal event. While acknowledging past skepticism surrounding Tesla's self-driving ambitions, Citi analysts identify potential advantages for the company.

"We view Tesla's biggest advantages as: (a) leading RoboTaxi HW & operating costs; (b) AI models (E2E) & training," highlights the Citi note. The key question, however, is whether Tesla can convince investors of a credible deployment roadmap for its autonomous vehicles.

Citi suggests that Tesla might focus on strategically deploying its RoboTaxi technology in "easier yet still lucrative domains" to leverage its strengths. The report also explores potential implications for the broader ADAS/AV industry, including how competitors might react to a more robust Tesla RoboTaxi offering. Citi maintained a Neutral rating and a $182 price target on Tesla shares.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.