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Unexpected Turns: Tesla’s Q1 Performance Leaves Investors Puzzled

  Unexpected Turns: Tesla’s Q1 Performance Leaves Investors Puzzled

The Shocking Numbers

Tesla, Inc.’s TSLA disappointing first-quarter delivery figures have stirred up a whirlwind of reactions among analysts, with opinions divided on the company’s trajectory.

Analysts Caught Off Guard

Deepwater Asset Management’s Gene Munster expressed his surprise at Tesla’s Q1 sales performance, highlighting an unexpected year-over-year sales dip of 8.5% and a 20% sequential drop. Munster’s grim outlook hinted at a potential further decline in Tesla’s stock before brighter days appear on the horizon.

Contrasting Views

Amidst the prevailing negativity, CANACCORD Genuity analyst George Gianarikas stood out with his optimism, maintaining a Buy rating and emphasizing supply-related challenges rather than demand issues for Tesla’s lackluster Q1 results. Gianarikas shared insights suggesting a better story could have unfolded if supply bottlenecks had not hampered production.

The Dark Clouds Loom

On the other end of the spectrum, Future Fund’s Gary Black painted a sobering picture, projecting downward revisions for Tesla’s future earnings per share and pinpointing alarming inventory levels, particularly in the Model Y segment. Black’s analysis underscored a need for strategic changes to combat the stormy seas ahead.

A Sore Spot in the US

Bearish analyst Gordon Johnson from GLJ Research honed in on Tesla’s struggle with waning demand in the US, contending that the heart of the issue lies in consumer preferences rather than operational inefficiencies. Johnson’s observations shed light on the challenges Tesla faces on its home turf.

Tesla’s stock closed down nearly 5% on Tuesday and continued to face downward pressure, reflecting the uncertainty plaguing investors in the aftermath of the turbulent Q1 performance.

Feast on more of Benzinga’s mobility musings by taking a gander here.

Delve deeper: Ross Gerber points fingers at Elon Musk’s ‘toxic’ behavior for Tesla’s lackluster Q1 sales and advocates for a reevaluation of the board

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