Tesla Underperforms in Q4: Wall Street Analysts Turn Bearish on the EV Giant

Tesla reported its latest earnings on Wednesday, marking the first annual profit contraction since 2017, with the fourth quarter witnessing a pronounced slump in profitability. The EV giant's revenue and EPS both missed analysts' consensus estimates. Additionally, the automaker abstained from providing delivery guidance for the current fiscal year. These contributed to a roughly 6% decline in its stock price during after-hours trading.

Tesla bull Adam Jonas from Morgan Stanley notes that the company's latest earnings report and call didn't shift market sentiment. He warns that stock prices might face downward pressure absent reassurance on growth prospects. Jonas forecasts a delivery growth deceleration to 15% in 2024, down from 38% in 2023.

Despite this, Jonas remains overweight on EV giant Tesla with a $345 price target, citing the possible impact of AI developments and a capital expenditure guidance for FY24 set at a minimum of $10 billion, surpassing Morgan Stanley's prediction of about $8.5 billion.