Tesla earnings estimates for 2024 are now below 2023's level, signaling another year of negative growth for this growth story stock. Meanwhile, the EV giant on Sunday raised the U.S. price of its Model 3 Long Range variant.
TSLA stock fell sharply Monday, hitting a fresh eight-month low.
Analysts now expect Tesla earnings per share of just $3.08 a share in 2024, according to FactSet. That would be a 1% decline vs. last year's $3.12. That was a 23% decline vs. 2022.
For 2025, analysts still see a solid increase to $4.24 a share, but that's been slashed from $5.27 at the end of last year and $6.90 at the end of February 2023.
Actual Tesla earnings peaked in 2022 at $4.07 a share.
On Monday, Piper Sandler cut Tesla earnings estimates, lowering its targets and deliveries. It now sees 2024 deliveries at 1.93 million vs. 1.808 million in 2023. In Q4 2023, Tesla deliveries ran at a 1.938 million annual rate.
German software giant SAP will no longer get company cars from Tesla due to late deliveries and price swings, daily paper Handelsblatt reported. That's a further bad sign in Germany, where overall EV demand is weakening with subsidies removed and the economy struggling. It's also that latest bad sign for Tesla fleet sales, with Hertz and Germany's Sixt slashing Tesla EVs from their rental fleets.
Tesla Model 3 Price Hike
The Model 3 LR price is now $46,990, an increase of $1,000. Tesla kept the U.S. price of its Rear-Wheel Drive version at $38,990.
The price hike may reflect strong demand for the upgraded "Highland" Model 3 or simply limited supply. Model 3 production is down significantly in the first quarter as the Fremont plant switched over to the Highland model.
In January, Tesla cut prices on two Model Y variants as well as the refreshed Model 3, while adding new incentives last week. The EV giant also cut Model Y prices substantially in Europe.
Also Sunday, Tesla allowed a free transfer of Full Self-Driving in North America for FSD owners who take delivery of new eligible EVs by March 31.
Tesla Model 3 And Y Price Inversion
Tesla's latest move further inverts prices between the Model 3 and Model Y, with the latter traditionally more expensive.
The Model Y RWD is $43,990, with the Long Range variant $48,990 and the Performance variant is $52,490. But the Model Y is eligible for the IRA tax credit of $7,500, so customers actually pay $36,490, $41,490 or $44,990 for the Model Y.
The Model 3 is no longer eligible because its batteries are from China or have China components.
Further, Tesla is offering Model Y inventory discounts of well over 10%.
Tesla Stock
Tesla stock sank 3.7% to 181.02 in Monday's trade, hitting a fresh eight-month low of 175.01 intraday. It's the S&P 500's worst performer so far in 2024, down 27% in 2024.
Shares last week rose 2.5% to 187.91, snapping a six-week losing week.
Tesla has a forward price-to-earnings ratio at a lofty 58.
Also over the weekend, the Wall Street Journal reported that some Tesla board members felt pressure to do drugs with Elon Musk. The in-depth report said some friends have urged him to go to rehab, and highlighted concerns that the board is not sufficiently independent from Musk.
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