Despite the concerns, some analysts remain optimistic about Tesla's long-term prospects. Wedbush Securities believes that EV adoption is around the corner and that Tesla's long-term story remains intact. Deepwater Asset Management's Gene Munster believes that while Tesla's growth may slow this year, it could see a 30% growth in 2025 due to the anticipated release of Tesla's next-gen vehicle. However, the near-term outlook remains uncertain, with concerns about price cuts, lack of clear guidance, and communication from Tesla's management.
Key takeaways:
- Tesla's fourth-quarter earnings report disappointed investors, leading to a steep sell-off on Wall Street and erasing $50 billion in market value.
- Analysts criticized the earnings call as a 'train wreck', pointing to vague guidance on profit margins and expensive structure. However, some remain bullish on Tesla's long-term prospects.
- Victoria Greene from G Squared Private Wealth suggested Tesla may be losing focus on its core business of manufacturing cars, as the earnings call focused heavily on AI and future projects.
- Gene Munster from Deepwater Asset Management said the results have dampened optimism for the stock's most bullish investors, predicting a possible 5% to 10% drop in the stock this year. However, he believes Tesla's growth momentum could return in a year.