Tesla unlikely to grow sales, Robotaxi success faces rocky road; Bernstein tells By Investing.com

Investing.com — Tesla Inc (NASDAQ: ) is unlikely to grow annual sales this year even with price cuts, Bernstein says, warning of a bumpy road for the electric vehicle maker that is unlikely to be saved by the launch of robotaxis.

“We think Tesla is unlikely to grow units this year, even assuming lower prices and/or very favorable financing,” Bernstein analysts said in a note on Wednesday.

Tesla reported third-quarter deliveries of 435,059 on Wednesday, missing Wall Street estimates of about 461,000.

The analyst expects Tesla to ship about 1.8 million units in 2024, below the company’s target of 2 million, representing steady year-over-year growth.

He hoped Tesla’s new, lower-priced vehicles, which the company said would begin production in the first half of 2025, would not move the needle on demand, analysts forecast. The changes are likely to be “modest,” while a lower-cost Model 2 arriving in volume before 2026 is unlikely.

While Tesla’s delivery updates lack the clout they once had, as investor focus has now shifted to the company’s robotaxi, Bernstein warns that the electric vehicle maker not only faces stiff competition, but also regulatory hurdles for to surpass competitors.

“Tesla is behind in getting regulatory approval for robotaxis … and may be difficult to overcome without ongoing local testing,” he added, just days before Tesla’s October 10 robotaxis event.

Looking ahead, Tesla will likely “continue to face the same challenges with an older product lineup and as competition intensifies even more,” Bernstein said, reiterating his underperform rating on the stock.