Tesla's price cuts have hit its margins. The pain in earnings could be felt more deeply in 2024, according to Goldman Sachs.
Tesla has been putting pressure on the entire electric-vehicle industry with the series of price cuts it has rolled out this year. The EV maker could continue its campaign next year, which would continue to hurt its margins, according to analysts at Goldman Sachs.
“We believe that Tesla could further lower prices in 2024 to support higher volumes which we believe will mitigate the earnings per share benefit from cost reductions,” Delaney wrote. Goldman’s forecast for this year is broadly in line with the consensus call for $2.89 among analysts tracked by FactSet. Its forecast for 2024 compares with the consensus estimate of $4.50.
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