Bearish outlooks on Tesla (TSLA) are emerging as analysts cut earnings predictions for the company after it missed first quarter expectations for deliveries and production numbers. Guggenheim Securities Vice President of Automotive Equity Research Ronald Jewsikow joins Market Domination to discuss headwinds contributing to the bearish views.
Jewsikow states that although Tesla has faced supply issues, the weakened outlook is «mostly a function of demand.» He notes slowed growth in the US, China, and European markets, describing it as «a very messy first quarter.» Even looking beyond this quarter, he expresses concerns lingering structurally across all regions.
Regarding China, Jewsikow forecasts that achieving growth in the market this year will be a «struggle.» He highlights the increased competition Tesla faces in the market, with competitors offering products directly competing with Tesla’s offerings at better price points.
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Editor’s note: This article was written by Angel Smith
