Tesla deliveries largely in-line, more price cuts needed, says Bernstein

Bernstein analyst Toni Sacconaghi notes that Tesla’s Q1 deliveries were largely inline, with inventories growing 18,000 to 97,000 units, and are up more than 5-times versus a year ago, though remain relatively low. The firm continues to believe that Tesla will need to further lower prices this year and/or next year to achieve its volume targets, incrementally pressuring margins. Despite significant price cuts in January, lead times on all Tesla models except Model Y in the U.S. appear low, competition is increasing, and the U.S. Model 3 SR is likely to face an incremental headwind in Q2 as it becomes ineligible for IRA rebates. Bernstein doesn’t expect a new low cost model from Tesla to ship in volume before 2025. The firm has an Underperform rating on the shares with a price target of $150.