The long-awaited unveiling of Tesla’s “Cybercab” robotic taxi last week has dampened optimism that the offering will help boost results, according to analysts at Piper Sandler.
Shares of the electric vehicle giant slid 8.8% on Friday after the event, which sent the stock soaring when it was first announced in April, received lukewarm reviews. Investors were particularly disappointed that CEO Elon Musk’s Cybercab presentation did not include firm timelines or specific financial details.
“We were optimistic that the robotaxi revelation would provide a reason to raise estimates,” Piper Sandler analysts said in a note to clients on Sunday.
Still, they said the disappointing showing gave them “no need to cut estimates,” adding that they had always assumed revenue from Tesla’s full-auto software wouldn’t start to break even until 2027 or 2028.
As a result, analysts at Piper Sandler said they are focusing on third-quarter deliveries when forming their outlook for Tesla.
Earlier this month, the company reported a smaller-than-expected rise in deliveries for the period, despite rolling out incentives and financing deals aimed at attracting cost-conscious consumers.
Tesla (NASDAQ:TSLA) delivered 462,890 cars in the July-September period, up 6.4% from a year earlier, but putting the company at risk of seeing its first full-year decline in numbers.
However, seasonally strong demand in China, steadily increasing production of Tesla’s Cybertruck and a typical year-end delivery push are believed to have helped Tesla achieve deliveries of 465,586 units. Deliveries are also expected to be around 1.9 million units in 2025, representing around 8% of estimated annual growth, thanks in part to higher demand stemming from lower interest rates and greater penetration into new regions.
“Investor focus will likely shift back to deliveries – and maybe that’s a good thing,” the analysts said.
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Reference;
Kanowsky, S. (2024) Tesla’s deliveries likely in focus after robotaxi event – Piper Sandler By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/stock-market-news/teslas-deliveries-likely-in-focus-after-robotaxi-event–piper-sandler-3661402 (Accessed: 14 October 2024).
