Analysts’ Response to Tesla’s (TSLA) Q4 and FY 2023 Earnings Call

The recent performance and outlook of Tesla has prompted various analysts to share their perspectives on the company’s trajectory. They note that Tesla’s projected volume growth for the current year may be tempered due to its focus on the next-generation platform and a lack of firm guidance for 2024. This has left some analysts, including enthusiastic supporters of Tesla (TSLA), feeling unsatisfied.

In response to Tesla’s record 2023, where vehicle sales grew by nearly 40% year-over-year to over 1.8 million units worldwide, Wall Street’s current expectations for vehicle sales in 2024 range from 2.1 to 2.2 million units, indicating a growth of about 20%. However, Tesla has indicated that its volume growth for 2024 will be significantly lower than the previous year’s ~40%.

Following Tesla’s recent earnings call, several analysts have adjusted their price targets for the company. While some, like Dan Ives, revised their targets downwards and described the conference call as a “train wreck,” others like Adam Jonas from Morgan Stanley and Canaccord Genuity have maintained their positive outlook on the company.

Despite the mixed sentiments surrounding Tesla’s recent earnings call, some analysts have emphasized the importance of patience and long-term prospects. They acknowledge the potential for growth through next-generation vehicle platforms, Full Self-Driving (FSD) upgrades, margin improvement, and product innovations like “Optimus,” even if the near-term outlook for 2024 may appear subdued.

In addition, there has been a keen focus on Tesla’s auto gross margins, which came in slightly below Street expectations but showed stability and improvement compared to previous quarters. This has been viewed as a positive development. Overall, while analysts may differ in their short-term assessments, many continue to hold a positive stance on Tesla’s long-term growth prospects and its impact in the electric vehicle industry.

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