From Nasdaq, Inc.:

Tesla Inc. (NASDAQ: TSLA) may face challenges in 2024, with Wells Fargo predicting only a 13% growth in deliveries, significantly below the company’s long-term target of 50%. Factors include a slowdown in global electric vehicle adoption and macroeconomic headwinds.

The company’s rocky start in 2024 has included price reductions in China and a production halt in Germany, which has led to concerns about Tesla’s automotive earnings for the latest quarter. Analyst Colin Langan predicts that the impact of price cuts will outweigh the effect of increased volumes in the latest quarter.

When Tesla releases its earnings next week, the focus will be on its profit outlook. Langan estimates a 15.4% gross margin for the period, which is below the 17% consensus view on VisibleAlpha. He also expects that higher leasing rates in the U.S. could affect profits, as leased vehicles qualify for IRA 45W credits.

Tesla’s potential challenges come at a time when its position in the global EV market is being challenged, with Chinese automaker BYD Co Ltd surpassing Tesla in global EV sales and announcing plans to invest over $14 billion in advancing vehicle intelligence and EV evolution. Tesla has also lost its title as the most-shorted stock, slipping to the third position, which could further impact its performance in the coming year.



Read more: Is Tesla’s Growth Slowing Down? Price Chops, Production Hiccups, And Now BYD Zooms Past On Buffett’s Billions