“A big red flag,” the investor says of the Tesla share

According to Elon Musk, Tesla, Inc. (NASDAQ: TSLA) Have always been more than just a car company. It is not difficult to see the logic as TSLA’s focus on technology, innovation and artificial intelligence has helped create a different dynamic around the company than a traditional car manufacturer.

And yet, in the end, the company’s most tangible products – at least for now – are vehicles. Judging by this Metrik, Tesla stumbled slightly in 2024 and experienced its first year-old fall in car sales, while slow deliveries in the fourth quarter did not live up to expectations.

What should investors expect in the prelude to the release of the electric producer’s Q4 2024 Print on January 29^th? Investor Bohdan Kucheriavyi believes a hard wake-up call can be on the horizon.

“Now that sales are falling into a favorable environment, while various challenges are likely to rise in 2025 during the Trump administration, the big problems for Tesla may be just getting started,” the 5-star investor explains.

While he is interfering with the disappointing sales and delivery figures, Kucheriavyi predicts that more challenges are likely to emerge under Trump 2.0 due to legislative changes on the way.

For example, Tesla was one of the largest recipients of the $ 7,500 EV tax deduction, the investor notes. The probable elimination of this tax deduction may well have a detrimental impact on sales and profits.

“If the regulatory credits actually disappear, Tesla’s profit margins can get to significantly lower levels,” Kucheriavyi says.

To further press margins, the investor mentions that any trade kerfuffles with Canada and Mexico would also be marked urgently. This is especially the case when it comes to the company’s supply chains, as up to 25% of the parts used to manufacture Tesla vehicles come from Mexico.

On the other hand, the investor acknowledges that the likelihood of more lenient regulations under Trump could support the roll -out of TSLA’s self -driving vehicles. The expected release of the compact Tesla Model Q can also provide a bump for the stock in the coming year, Kucheriavyi adds.

Still, the investor is not sold by the bullish arguments.

“Although Tesla still has some growth opportunities, it will be difficult for the company to offset the fall in car sales,” concludes the investor, who rates TSLA as a sale. (To see Kucheriavyis Track Record, click here)

Wall Street’s views, on the other hand, are a bit mixed. With 12 purchases, 10 teams and 8 sell assessments, TSLA has a consensus team assessment (ie neutral). Its 12-month average price target of $ 345.11 suggests loss of ~ 15% in the coming year. (See TSLA stock forecast?

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Disclaimer: Opinions in this article are solely those from the highlighted investor. The content is intended only to be used for information purposes. It is very important to make your own analysis before making any investment.