Tesla Is Not Threatened

What Tesla analysts are predicting a 6% rise in car sales quarter-on-quarter to 448,000 vehicles

Why Cost-cutting actions and charging deals have most likely spurred sales

What next The company aims to sell 1.8m to 2 million vehicles in 2023

Tesla’s stock has seen a 109% increase this year. Investors are eagerly awaiting the company’s upcoming report on its vehicle deliveries for the latest quarter, as this number will be crucial.

To fend off competition and maintain its market position, Tesla reduced prices across its model lineup.

Analysts predict around 448,350 car sales for the quarter, a 6% increase from the previous quarter.

Tesla aims to sell between 1.8 million and 2 million vehicles this year, requiring a slight increase in sales pace.

Although Tesla delivered over 1.3 million cars worldwide last year and remains a dominant electric vehicle (EV) maker in the US, it has fallen behind BYD Co. in China.

BYD’s fresher lineup and global ambitions have caught Elon Musk’s attention, prompting him to acknowledge their competitiveness.

Tesla initiated price cuts last year due to inflation and rising interest rates, starting in China and later expanding to the US and Europe.

While prices have been adjusted multiple times, Tesla’s vehicles are now significantly cheaper than at the beginning of the year.

Tesla benefits from the Inflation Reduction Act, with its high-volume vehicles, the Model 3 and Model Y, qualifying for the full $7,500 federal tax credit.

Free Charging in the US

Tesla has recently offered additional incentives, such as three months of free fast-charging in the US, to clear inventory cars.

Despite opening new plants outside Berlin and in Texas, Tesla has manufactured more vehicles than it has delivered, and this trend likely continued in the second quarter.

Analysts anticipate potential further price cuts in the future, and some have downgraded Tesla’s stock.

However, there is optimism surrounding the company’s dominant US charging network, with Ford Motor Co. and other automakers adopting Tesla’s plug and port system for access to Supercharger stations.

Tesla’s shares have surged by 40% as a result.

Nevertheless, several analysts believe negative revisions to 2024 consensus estimates may be necessary, highlighting the need for caution.

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