Wallstreetcn
2024.10.01 23:25
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China increases subsidies for electric vehicles, Tesla is expected to see its first quarterly sales growth this year

Media surveys show that analysts expect Tesla's global delivery volume in the third quarter of this year to be around 463,900 vehicles, a year-on-year increase of about 7%

Thanks to the increased subsidies from the Chinese government in the important market, stimulating domestic sales of electric vehicles, Wall Street expects that Tesla is likely to achieve year-on-year positive growth in quarterly sales for the first time this year.

According to a survey by Bloomberg analysts, analysts expect that in the third quarter of this year, Tesla's global delivery volume may be around 463,900 vehicles, an increase of about 7% compared to the same period last year.

Barclays analyst Dan Levy predicts that Tesla will deliver 470,000 vehicles globally in the third quarter, with the "strong performance in the Chinese market" being a timely boost for Tesla, "helping to offset the continued weakness in the US and European markets."

Levy wrote in the report that Barclays expects Tesla's delivery volume in the third quarter to increase by 8% year-on-year and 6% quarter-on-quarter. If the performance exceeds expectations, it may drive Tesla's stock price further on the day of the release of the self-driving taxi Robotaxi, reminding everyone that at least the concerns about the fundamentals have dissipated.

Piper Sandler analyst Alexander Potter raised expectations for Tesla's delivery volume, currently expecting global deliveries of 459,000 vehicles in the third quarter and an annual delivery volume of 1.75 million vehicles. Potter's revised expectations are still slightly below market consensus, but he believes that Tesla's quarterly performance in China may reach a historical high.

Renowned Tesla bull and Wedbush analyst Dan Ives expects not only an improvement in Tesla's sales in the third quarter, but also a potential improvement in profitability, which has significantly declined over the past year.

In a report last week, Ives wrote, "Importantly, Wedbush believes that 'price cuts are now basically a thing of the past,' which should address the profitability issue that has plagued Tesla for the past year. 'We believe that gross margins should finally start to rebound from those levels (over the past year), making significant progress in the third quarter."