A sharp decline in Tesla sales is normal-Morgan Stanley
2022.12.01 08:02
A sharp decline in Tesla sales is normal-Morgan Stanley
Budrigannews.com – Tesla shares (NASDAQ:) are an electric vehicle manufacturer.after Morgan Stanley reiterated an Outperform rating and a $330.00 price target, are up 0.28 percent in pre-market trading on Thursday.The year 2023, according to analysts, “shaping up to be a disappointing year for EVs.”
“2023 is setting up to be a narrative changing year as EV sales growth decelerates significantly from 68% YTD to as little as 15 to 20% growth next year,” they wrote in a note.
The supply of EV batteries ought to also continue to expand at a much faster rate.Analysts in the battery industry in China say that by the end of FY22, global battery capacity could be more than 1.2 TWh, or two times the level it was the year before.
Recent reports claim that Volkswagen AG (ETR:)is said to be delaying the release of its next-generation electric vehicle platform, known as “Trinity,” from 2026 until the decade’s end due to a lack of software readiness.For a variety of reasons, Morgan Stanley anticipates that other OEMs will delay EV plans.
The legacy automakers pursuing EVs, according to MS analysts, will win if they spend more effectively and economically on specific products.“Legacy automakers like GM and Ford have an opportunity to reconsider the quantum and timing of their EV investment plans last established during a very different economic and interest rate environment of 2020/2021,” they believe, in light of the shifting global economy.
They anticipate that a significantly more difficult economic climate in 2023 will prompt the Board to reevaluate the size and direction of OEM long-term spending plans and allow for a more adaptable response to a variety of potential strategic actions to boost returns.
“Once again, while we see high growth opportunities within the EV market,” the analysts wrote, “we think there is room for investor expectations to be managed (downward) when considering capital efficiency and profitability as we head into a period of rising capital costs and potentially prolonged economic downturn.” “Once again, while we see high growth opportunities within the EV market,”
