$Tesla (TSLA.US)$ Tesla's 5th price cut this year points to ...
Tesla's 5th price cut this year points to 'slowing demand,' analyst says.
"We expect investors to view price cuts as a negative as it runs counter to TSLA recent commentary (as recently as early Mar investor day) suggesting strong demand," Guggenheim Securities Analyst Ronald Jewsikow wrote in a note to investors on Mon.
Guggenheim sees the price cut impact hitting Tesla's Q2s ASP (average selling price) of around USD300, with the bank's estimate down 50 bps from consensus. ASPs are important for investors and analysts to track as any hit to margins from a drop in ASPs affects future profits.
"All of our demand trend work has pointed to slowing demand into March, with wait times flat to negative (globally) across all models and inventory building," Jewsikow said.
Following the price cuts, Jewsikow updated his estimates for Tesla's financials by dropping FY 2023 revenue, EBITDA, and EPS estimates. Despite this Guggenheim maintained its USD105 price target, though it is reiterating its sell rating for Tesla shares.
Overall, with Mar orders running below supply, Jewsikow doubts the U.S. price cuts will be enough to boost sales as the "demand environment remains challenging," with risks skewing to the downside.
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ZnWC : Quote:
BYD was throttling back on production in the face of weaker industry-wide demand in China since the start of the year...
Slowing demand has BYD reducing shifts at China EV plants By Investing.com
71863268 ZnWC: best selling car in chimera so, how u figure that?
bullrider_21OP ZnWC: Slowing demand is affecting every EV maker including BYD and Tesla.