Citi analysts have revised their third-quarter predictions for Tesla Inc. (NASDAQ:TSLA), citing factors such as sales in China, global registration data, the pace of production, and the transition of the Model 3. The updated forecast was announced on Thursday.
The new projection puts Tesla's Q3 sales at approximately 450,000 vehicles, with an adjusted earnings per share (EPS) of 75 cents. This deviates from the consensus established by FactSet.
Citi has also expressed concerns regarding Tesla's growth volume, warning that it could potentially impact the company's projections for 2024. Tesla shares have not been deterred by these concerns and have experienced a substantial increase, doubling in value this year alone, according to InvestingPro data.
InvestingPro data also shows that Tesla has a market cap of $782.01 billion and a P/E ratio of 63.65. The company's revenue for the last twelve months is $94.03 billion, demonstrating a growth of 39.99%. This aligns with one of the InvestingPro Tips that analysts anticipate sales growth in the current year for Tesla.
In the meantime, other major automakers are preparing to release their sales figures. Companies like Ford Motor Co . (NYSE:NYSE:F) and General Motors Co. (NYSE:NYSE:GM) are expected to report their numbers soon. This comes as J.D. Power predicts a double-digit surge in U.S. new-car sales.
While Tesla continues to adjust to market conditions, other automakers are dealing with internal issues. Strikes have been reported at both General Motors and Stellantis (NYSE:STLA), which could potentially affect their operations and output.
Tesla, according to another InvestingPro Tips, holds more cash than debt on its balance sheet, which could potentially give the company an edge in navigating any unforeseen market conditions.
As the automotive industry navigates these challenges and changes, all eyes will be on how these forecasts and predictions play out in the coming weeks. For more insights and tips on investing, check out InvestingPro, which offers over 21 additional tips on companies like Tesla.
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