tesla (TSLA) 2024 earnings estimates are currently below 2023 levels, suggesting another year of negative growth for this growth story stock. Meanwhile, the EV giant raised the U.S. price of its Model 3 long range model on Sunday.
TSLA stock fell sharply on Monday, hitting an eight-month low.
Analysts currently expect Tesla to post earnings per share of just $3.08 in 2024, according to FactSet. This is a 1% decrease compared to last year’s price of $3.12. This was a 23% decrease compared to 2022.
Analysts expect a steady rise to $4.25 per share in 2025, but this has been lowered from $5.27 at the end of last year and $6.90 at the end of February 2023.
Piper Sandler on Monday lowered its profit forecast and lowered its goals and achievements. Currently, deliveries are expected to reach 1.93 million vehicles in 2024 and 1.808 million vehicles in 2023.
German software giant SAP (SAP) will no longer receive company cars from Tesla due to delivery delays and price fluctuations, the daily newspaper Handelsblatt reported. This is an even worse sign for Germany, where subsidies have been cut and the economy is in a slump, causing overall EV demand to slump. This is also the latest bad sign for Tesla vehicle sales. hertz (HTZ) and Germany’s Sixt have removed Tesla EVs from their rental fleets.
Tesla Model 3 price hike
The Model 3 LR is now priced at $46,990, an increase of $1,000. Tesla has kept the U.S. price of the rear-wheel-drive version unchanged at $38,990.
The price increase may reflect strong demand for the upgraded “Highland” Model 3, or simply limited supply. Model 3 production decreased significantly in the first quarter as the Fremont plant switched to the Highland model.
Tesla lowered the prices of two Model Y models and the refreshed Model 3 in January, while adding new incentives last week. The EV giant also significantly reduced the price of the Model Y in Europe.
Also on Sunday, Tesla granted free transfer of full self-driving in North America to FSD owners who took delivery of new eligible EVs by March 31st.
Tesla Model 3 and Y price reversal
Tesla’s latest move further reverses the prices of the Model 3 and Model Y, with the latter traditionally being more expensive.
The Model Y RWD costs $43,990, the Long Range version costs $48,990, and the Performance version costs $52,490. However, the Model Y is eligible for the $7,500 IRA tax credit, so the customer will actually end up paying his $36,490, $41,490, or $44,990 for the Model Y.
The Model 3 is exempt because its battery is made in China or uses parts made in China.
Additionally, Tesla is offering discounts of well over 10% on Model Y inventory.
Tesla stock fell 5.7% to 175.30 in Monday trading. It fell more than 27% in 2024, making it the worst performer of the S&P 500 index so far.
The stock rose 2.5% to 187.91 last week, breaking a six-week losing streak.
Tesla’s forward price/earnings ratio is high at 61 times.
Also on the weekend, wall street journal Some Tesla board members reported feeling pressured to do drugs with Elon Musk. The detailed report said some friends had encouraged Musk to go to rehab and highlighted concerns that the board was not independent enough from Musk.
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