Ahead Of Tesla's Q4 Earnings, Analyst Positive Despite Muted Outlook For Margin, New Product Ramp-up
Portfolio Pulse from Shanthi Rexaline
Ahead of Tesla's Q4 earnings, Gene Munster of Deepwater Asset Management remains positive despite a muted outlook for margins and new product ramp-up. Munster predicts a slight increase in core auto margin to 16.7% for Q4, ending Tesla's declining margin streak. He anticipates stable margins in 2024 but below consensus estimates. Cybertruck sales are expected to gradually increase, with significant growth by 2026. The refreshed Model 3, accounting for 40% of deliveries, will see a price increase of 15% and does not qualify for the U.S. tax credit. Investors are also interested in the full-self-driving (FSD) timeline, Giga Mexico updates, and new model launch timing. Munster is skeptical about a near-term FSD breakthrough and does not expect a new low-priced model or robotaxi announcement in 2024. Tesla's stock closed slightly up on Friday but has seen a 15% drop in January.
January 21, 2024 | 6:46 pm
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Tesla's Q4 earnings are anticipated with a positive outlook from Gene Munster, who expects a marginal increase in core auto margins and significant future sales for the Cybertruck. The Model 3 refresh will see a price increase and does not qualify for tax credits, which could impact demand. Investors are also focused on the FSD timeline and updates on new models and facilities.
The article presents a mixed outlook for Tesla. While the slight increase in margins is positive, the muted outlook for new product ramp-ups and the lack of tax credit eligibility for the Model 3 refresh could temper investor enthusiasm. The anticipation of future Cybertruck sales and interest in FSD developments may maintain investor interest, but the overall impact on the stock price is likely to be neutral in the short term.
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