Cybertruck discounts indicate tepid demand – Magic Post

Cybertruck discounts indicate tepid demand

 – Magic Post

Tesla today

Tesla company logo
$424.07 -2.43 (-0.57%)

As of 01/21/2025 at 04:00 PM ET

52 week range
$138.80

$488.54

P/E ratio
116.18

Price target
$304.94

Tesla company Nasdaq: TeslaCybertruck discounts are bad news for the stock price. The company announced a series of discounts in early January, signaling tepid demand in what should be a growth driver. The news includes the transfer of workers to other lines, which indicates that demand is not expected to increase. The bottom line is that the leading electric vehicle maker faces increasing competition and will likely report another annual decline in total vehicle deliveries while the rest of the industry grows.

The outlook for Q4 and 2025 is optimistic despite the downward trend in revisions. Analysts expect revenue growth to accelerate sequentially and year-on-year, reaching 15% in 2025. Growth drivers will include power generation and services, but weakness in the core automotive unit will offset them. Headwinds to growth include an environment of higher interest rates for a longer period, affordability, and politics. President Trump is expected to eliminate incentives for electric vehicle OEMs and consumers early in his administration, increasing hurdles and slowing demand.

Analysts remain optimistic; Raised targets for 2025 but gains are limited

Analysts are hopeful of Tesla’s success in 2025 and have been raising sentiment and price targets over the past two months. However, the consensus sentiment by MarketBeat remains outstanding, with 22.5% of analysts rating it as a sell, and the price target lagging the move. The mid-January consensus assumes a 30% downtrend from critical resistance targets, and a deeper downtrend is possible. The $300 level coincides with the middle of the trading range and would be a major bearish signal if it is broken. In terms of the analyst’s high-end range, it is in line with the 2024 highs in stock prices, creating a market cap.

Tesla stock forecast today

12-month stock price forecast:
$304.94
He catches
Based on 40 analyst ratings
High expectations $515.00
Average expectations $304.94
Low expectations $24.86

Tesla stock forecast details

Among the headwinds were sales in China, the company’s second-largest market, which amounted to about 37% of 2024 revenue. Sales grew 8.8% last year, but factors such as price cuts and loss of market share offset that. The company’s market share diminished from 7.8% in the first quarter to 6% in the third quarter and is likely to continue to decline due to increased competition. Domestic automakers are set to benefit from the dual impact of stimulus at home and tariffs abroad, leaving Tesla struggling. Analysts cite factors such as portfolio aging as constraints on demand, and new models are unlikely to drive business.

The most likely release is the Q model sometime this year, likely in the first half, but no real indication has been given. There are high chances that the company will launch a compact car; The question is when and how much it will cost to manufacture and order. Although an innovation, the Q will be more of a novelty than a growth engine; The vehicle will have limited seating, cargo room, and range, making it less than ideal for most purposes.

Institutions cap Tesla’s January gains

Institutions bought Tesla shares outright for all four quarters of 2024, but the trend turned at the end of the year and continued into the first two weeks of January. Data tracked by MarketBeat shows that sales in the first two weeks of January doubled the volume of purchases, in line with the market’s recent high. Institutions own more than 65% of the stock, so the selling would be a strong headwind for the stock price if it continues.

Size is another concern for Tesla bulls. A spike in volume accompanies the market boom in 2024, but overall volume and spikes are trending downward over time. Volume in early January was down 15% from 2024, well below the previous year, as retail investors lost interest in the opportunity. With no bullish catalysts expected soon and plenty of risks, volume will likely trend lower in 2025, increasing the potential for significant market movement and volatility.

Tesla stock chart TSLA

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