Wall Street’s outlook on Tesla Inc. is darkening rapidly, with at least two analysts turning more cautious on the electric vehicle maker in as many days.
Some of the EVs made by Tesla may no longer qualify for government subsidies in the U.S. and in some European countries in 2024, putting further pressure on the company’s revenue at a time when demand for these cars is already slated to slow, the analysts said. “The loss of these incentives may further the risk of additional price cuts if Tesla continues to push for growth next year,” Matt Portillo, an analyst at Tudor, Pickering, Holt & Co., wrote in a note Dec. 19. Portillo also expects Tesla’s deliveries for the last three months of 2023 to miss average analysts’ expectations.
