Analysts Say Tesla Demand To Sink in 2nd Half Of 2022
After a solid second quarter, Tesla bulls are seeing some storm clouds on the horizon.
Photo Insert: Tesla fell short of analyst expectations of 256,520.
"The elephant in the room for Tesla (and the broader market) is with dark economic storm clouds on the horizon and Musk himself thinking recession risk is imminent," Brian Sozzi, Yahoo Finance editor-at-large wrote.
"In a nutshell, while June delivery numbers were ugly and nothing to write home about, the Wall Street will be focused on the trajectory for the second half... and the overall demand picture staying firm," Wedbush senior equity research analyst Dan Ives stressed in a note to clients.
The electric vehicle manufacturer reported 254,695 second-quarter deliveries over the weekend. While this represented approximately 27% year-on-year growth, it fell short of analyst expectations of 256,520. Citi Itay Michaeli blamed the miss on a drop in Model 3 and Model Y deliveries.
The electric car company's performance was hampered by a slew of challenges affecting the auto sector, ranging from semiconductor shortages to COVID regulations in China. It also raised its prices, significantly lowering demand.
Tesla's second-quarter results indicate that consumer anxieties about a recession have yet to materialize. In fact, it's reasonable to believe Tesla's results would have been better if not for supply chain issues that limited demand.
Analysts largely agree, though, that if demand slows considerably in the second part of the year, as it normally does, it may put more strain on Tesla's bottom line at a time of high expenditures.
This would very certainly hurt the stock, which is down 35% so far in 2022.