2023 kicked off where 2022 ended for Tesla (NASDAQ:TSLA) stock – on the backfoot. The year began with more losses as 2023’s introductory session sent the shares down by 12% after the company posted disappointing 4Q22 delivery metrics.
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Despite announcing a record 1.31 million total deliveries for the year, the company only made 405,278 total deliveries in the quarter, falling well short of the 431,117 expected on Wall Street. All in all, deliveries climbed by 40% in 2022, also falling shy of the company’s 50% target.
Even the two December price cuts for U.S. customers weren’t enticing enough, and the fact the company built around 440,000 units in the quarter might indicate an environment in which supply is now exceeding demand.
While the update was nothing much to shout about, Goldman Sachs’ Mark Delaney continues to see Tesla as “well positioned for long-term growth given its position as a cost and full solution leader in clean mobility/EVs.”
The main points of discussion going forward, says Delaney, will be whether or not vehicle deliveries can pick up again (Delaney anticipates that they will, especially starting in 2Q23), margins (and how much lower costs can “offset” lower prices), and Tesla’s brand (and how strongly it is linked to its position as the industry leader in clean mobility/EVs). “All three of these issues will be important to monitor,” the analyst noted.
Given the 4Q delivery data suggests “weaker near-term demand” than previously anticipated, Delaney has lowered his 2023 delivery estimate from 1.85 million to 1.8 million. That said, the analyst notes the “potential for the China market to strengthen over the course of 2023 and new credits like the IRA should be a positive.”
All told, Delaney rates TSLA shares a Buy backed by a $205 price target. The implication for investors? Upside of ~85% from current levels. (To watch Delaney’s track record, click here)
Amongst Delaney’s colleagues, current support for Tesla is decent but not conclusive. Based on 20 Buys, vs. 10 Holds and 2 Sells, the stock has a Moderate Buy consensus rating. The average price target stands at $256.67, suggesting one-year gains of ~132%. (See Tesla stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
