On Thursday, Tesla’s shares dropped in pre-market trading after the company’s earnings fell short of expectations and it cautioned about a slowdown in 2024. The shares were down approximately 8% as of 6:33 a.m. ET. Tesla’s automotive revenue for the fourth quarter of 2023 was $21.6 billion, a mere 1% increase from the previous year, failing to meet market expectations. The company’s biggest concern was its outlook for 2024, warning that vehicle volume growth may significantly slow down as it focuses on launching its “next-generation vehicle” in Texas. Tesla delivered 1.8 million cars in 2023 but has been reducing prices in key markets, impacting its margins and facing stiff competition from both Chinese electric vehicle makers like BYD and traditional automakers in Europe and China. In response to the earnings report, several brokers lowered their price target for Tesla, including Barclays and RBC analysts, while Canaccord Genuity also reduced its price target.
