Analysts from Morgan Stanley are closely monitoring Tesla Inc.’s forthcoming earnings call, scheduled for Wednesday at 5:30 p.m. Eastern Time, to determine whether the electric vehicle manufacturer will maintain its ambitious delivery growth target of 20-30% for the current year. This anticipation comes alongside expectations for updates concerning Tesla's product lines, particularly the production ramp-up of the new Model Y, advancements in its full self-driving assist technology, and progress on the humanoid robot, dubbed Optimus.

In a note released on Friday, analysts articulated their forecasts for Tesla's performance in the fourth quarter, predicting that the company’s gross auto margin—excluding regulatory credits—will hover around the 15% mark. They further indicated that free cash flow for this period would likely benefit from a reduction in inventory levels.

Despite the optimistic tone permeating the company's production plans, the analysts expressed reservations regarding Tesla’s vehicle delivery outcomes for the year. They foresee growth figures landing closer to 10% rather than the targeted 20%. This forecast is influenced by several market factors, including heightened competition in the electric vehicle sector in China, diminishing volumes from the newly launched Cybertruck, and anticipated reductions in EV tax incentives.

Additionally, the analysts acknowledged the potential influence of former President Trump’s policies regarding electric and autonomous vehicles, which could spur new domestic supply chains for critical technologies. They assert that Tesla is poised to play a significant role in the advancement of next-generation manufacturing and supply chain dynamics, with the potential to enhance both growth and shareholder value.

Currently, Morgan Stanley maintains a price target of $430 for Tesla and has assigned an “overweight” rating to the stock. On Monday, Tesla shares experienced a decline of 2.3%, closing at $397.15; however, they have appreciated by 4.7% year-to-date, showcasing a degree of resilience amid market fluctuations.

For further analysis and updates on the future of mobility, Benzinga's Future Of Mobility coverage can be accessed.

Source: Noah Wire Services