Tesla’s shares (NASDAQ:TSLA) are little changed at the time of writing despite Guggenheim reiterating its Sell rating. The firm highlighted potential delivery shortfalls in Europe and China for Q3 and emphasized issues with unfavorable demand indicators like lower pricing. They predict Q3 deliveries at 445,000, falling below the general consensus of 461,000 and last quarter’s 466,000. The average selling price, they believe, will be around $44,350, slightly shy of the predicted $44,500.
Recent months have seen Tesla cutting prices both in China and the U.S., a strategic move to stimulate demand amid stiffening competition in the EV sector. However, Guggenheim paints a less rosy picture of Tesla’s financials, forecasting gross margins at a conservative 17.4% against the more optimistic market consensus of 18.5%. Looking beyond Q3, Guggenheim remains skeptical about Tesla’s ability to reclaim its prices, predicting that their earnings per share will consistently lag behind market expectations until at least 2025.
Is Tesla a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on TSLA stock based on 11 Buys, 12 Holds, and four Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $273.33 per share implies 11.24% upside potential.