Tesla 'Not Going To Grow This Year,' Says Bernstein Analyst: Maintains 'Underweight' Rating While Noting That Elon Musk's Pay Package Approval Will Bring 'Relief Rally'
Portfolio Pulse from Ananya Gairola
Bernstein analyst Toni Sacconaghi maintains an underweight rating on Tesla (TSLA) despite the approval of Elon Musk's new pay package, which he believes will lead to a 'relief rally.' Sacconaghi predicts Tesla's unit growth will decline this year and any growth will require significant price cuts, impacting earnings and cash flow.
June 15, 2024 | 10:00 am
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Bernstein analyst Toni Sacconaghi maintains an underweight rating on Tesla, predicting a 'relief rally' from Musk's new pay package approval but expecting unit growth to decline this year, impacting earnings and cash flow.
The approval of Musk's pay package is seen as a positive, potentially leading to a short-term 'relief rally.' However, the analyst's underweight rating and prediction of declining unit growth and earnings suggest a neutral overall impact.
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IMPORTANCE 90
RELEVANCE 100