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Time of India
2 hours ago
- Automotive
- Time of India
Tesla quarterly deliveries seen falling again
Tesla is expected to report another fall in quarterly deliveries on Wednesday as the backlash against CEO Elon Musk's political views and competitive pressures continue to drag on demand. While much of Tesla's trillion-dollar valuation hangs on Musk's bet on commercializing robotaxis, most of the company's current revenue and profits come from its core business of selling electric vehicles - one that has been under pressure due to high interest rates and rising competition. The global EV market has been growing, albeit at a slower pace than in previous years, but annual sales of Tesla's aging lineup fell for the first time in 2024. While Musk has said sales will return to growth in 2025 - a pullback from his earlier promise of 20-30% growth - analysts expect an 8% sales decline this year. For the second quarter ended June, Tesla is expected to deliver 394,380 units, according to 23 analysts polled by Visible Alpha. That would be a drop of more than 11% year-over-year, and would follow a 13% decline the company reported in the previous quarter. Tesla has said the fall last quarter was due to a pause in production to shift to a refreshed version of its best-selling Model Y SUV, and analysts had said many customers were delaying purchases as they waited for it to roll out. "I think a lot of analysts were thinking this quarter would have a bump positive because of the new Model Y," said Ross Gerber, CEO of Tesla investor Gerber Kawasaki Wealth and Investment Management. "But the new Model Y in my mind isn't such a departure from the old Model Y," he said, adding that demand for the model did not live up to expectations. Instead, people bought fewer Tesla vehicles. Some prospective buyers were irked by Musk's public embrace of far-right politics in Europe and work for U.S. President Donald Trump overseeing cuts to federal jobs and funding. Though Musk has shifted his focus back to his companies, the backlash, along with customers choosing cheaper Chinese EVs, led to the fifth straight month of falling sales for Tesla in Europe, with a 27.9% drop in May, data from the European Automobile Manufacturers Association showed. In China, Tesla's share of the EV market has fallen to 7.6% for the first five months of 2025, from 10% last year and a peak of 15% in 2020, as competitors won over consumers with snazzy, new, feature-packed EVs. Xiaomi's YU7 SUV received exceptionally strong orders hours after going on sale last week and fanned speculation that Tesla may have to cut prices to fight back. "Lagging sales in Europe compared to the rest of the EV market and the increasing competition in China are both working against Tesla going forward," said Sam Fiorani, vice president at research firm AutoForecast Solutions. To achieve Musk's target of returning to growth this year, Tesla - if those second-quarter estimates are accurate - would need to hand over more than a million units in the second half, which would be a record and a tough challenge, according to Wall Street analysts, although typically sales are stronger in the latter half. Some help could come from Tesla's planned cheaper model - expected to be a stripped down Model Y - that the company has said it will start producing by June end. Reuters reported in April it would be delayed by at least a few months. After tanking early this year amid angry anti-Musk protests, Tesla shares have regained some ground recently. Last month, the company rolled out about a dozen robotaxis in a limited part of Austin, Texas, ferrying a small group of invited fans for a nominal fee but with a safety monitor and other restrictions.
Mint
20 hours ago
- Automotive
- Mint
Tesla quarterly deliveries seen falling again
Q2 Tesla deliveries seen falling 11% y-o-y on average Demand weak in Europe, China amid competition, Musk backlash Analysts expect sales to fall 8% in 2025 By Akash Sriram and Abhirup Roy July 1 (Reuters) - Tesla is expected to report another fall in quarterly deliveries on Wednesday as the backlash against CEO Elon Musk's political views and competitive pressures continue to drag on demand. While much of Tesla's trillion-dollar valuation hangs on Musk's bet on commercializing robotaxis, most of the company's current revenue and profits come from its core business of selling electric vehicles - one that has been under pressure due to high interest rates and rising competition. The global EV market has been growing, albeit at a slower pace than in previous years, but annual sales of Tesla's aging lineup fell for the first time in 2024. While Musk has said sales will return to growth in 2025 - a pullback from his earlier promise of 20-30% growth - analysts expect an 8% sales decline this year. For the second quarter ended June, Tesla is expected to deliver 394,380 units, according to 23 analysts polled by Visible Alpha. That would be a drop of more than 11% year-over-year, and would follow a 13% decline the company reported in the previous quarter. Tesla has said the fall last quarter was due to a pause in production to shift to a refreshed version of its best-selling Model Y SUV, and analysts had said many customers were delaying purchases as they waited for it to roll out. "I think a lot of analysts were thinking this quarter would have a bump positive because of the new Model Y," said Ross Gerber, CEO of Tesla investor Gerber Kawasaki Wealth and Investment Management. "But the new Model Y in my mind isn't such a departure from the old Model Y," he said, adding that demand for the model did not live up to expectations. Instead, people bought fewer Tesla vehicles. Some prospective buyers were irked by Musk's public embrace of far-right politics in Europe and work for U.S. President Donald Trump overseeing cuts to federal jobs and funding. Though Musk has shifted his focus back to his companies, the backlash, along with customers choosing cheaper Chinese EVs, led to the fifth straight month of falling sales for Tesla in Europe, with a 27.9% drop in May, data from the European Automobile Manufacturers Association showed. In China, Tesla's share of the EV market has fallen to 7.6% for the first five months of 2025, from 10% last year and a peak of 15% in 2020, as competitors won over consumers with snazzy, new, feature-packed EVs. Xiaomi's YU7 SUV received exceptionally strong orders hours after going on sale last week and fanned speculation that Tesla may have to cut prices to fight back. "Lagging sales in Europe compared to the rest of the EV market and the increasing competition in China are both working against Tesla going forward," said Sam Fiorani, vice president at research firm AutoForecast Solutions. To achieve Musk's target of returning to growth this year, Tesla - if those second-quarter estimates are accurate - would need to hand over more than a million units in the second half, which would be a record and a tough challenge, according to Wall Street analysts, although typically sales are stronger in the latter half. Some help could come from Tesla's planned cheaper model - expected to be a stripped down Model Y - that the company has said it will start producing by June end. Reuters reported in April it would be delayed by at least a few months. After tanking early this year amid angry anti-Musk protests, Tesla shares have regained some ground recently. Last month, the company rolled out about a dozen robotaxis in a limited part of Austin, Texas, ferrying a small group of invited fans for a nominal fee but with a safety monitor and other restrictions. (Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco, Editing by Rosalba O'Brien)
Yahoo
5 days ago
- Business
- Yahoo
Bank of America Soured on Molson Coors Stock. Here's Why.
Bank of America downgraded Molson Coors Beverage's stock to "neutral" and lowered its price target for company shares to $50. The analysts are relatively bearish on the maker of Coors, Miller High Life and Blue Moon. Visible Alpha has the average analyst price target at $62. Bank of America anticipates that the company will struggle as beer consumption continues to drop in the isn't on tap at Coors, some analysts say. Bank of America downgraded Molson Coors Beverage (TAP) stock from 'buy' to 'neutral' on Friday, citing a rocky period for the beer industry. The analysts lowered their price target for the maker of Coors, Miller High Life and Blue Moon to $50—the lowest target among analysts who cover the stock tracked by Visible Alpha. The average price target among analysts is about $62, per Visible Alpha. "It will be difficult for [Coors] to achieve what we expected with the industry slump continuing,' the Bank's analysts wrote. Molson Coors ticked higher Friday, recently trading for more than $47. They have fallen more than 17% so far this year. Initially, Bank of America expected beer companies to move 1% less product, by volume, in 2025 than they did in 2024. Its research team now forecasts a 4% annual decline, with volume dropping below levels seen in the early 1990s. Beer has been 'ceding customers and attention,' the analysts said, while describing beers as the 'sheep' in an analogy based on the food chain: They're up against wolves—spirits moving in with premixed, ready-to-drink beverages—and parasites—energy drinks exploiting the beer distribution network, Bank of America said. "The U.S. beer industry continues to decline below historic trends," the note said, adding that analysts now view Coors "more in line with US packaged food industry peers, where the industry growth dynamics are similar." Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Micron Reports Record Revenue as Data Center Sales Surge on AI Demand
Micron Technology (MU) reported record quarterly revenue as data center sales more than doubled year-over-year on AI-driven demand. The memory chip maker reported record revenue of $9.3 billion, up 37% year-over-year and well above of the analyst consensus compiled by Visible Alpha. Its adjusted net income of $2.18 billion, or $1.91 per share, rose from $702 million, or 62 cents per share, in the year-ago quarter, also beating estimates. The gains came as the Nvidia (NVDA) partner's data center sales more than doubled year-over-year. 'We are on track to deliver record revenue with solid profitability and free cash flow in fiscal 2025, while we make disciplined investments to build on our technology leadership and manufacturing excellence to satisfy growing AI-driven memory demand," said CEO Sanjay Mehrotra in a release. In the current quarter, Micron expects revenue of $10.4 billion to $11 billion and adjusted earnings per share of $2.35 to $2.65. Analysts had called for revenue of $9.99 billion and adjusted EPS of $2.04. Micron shares rose close to 4% in extended trading following the release. The stock has gained over 50% in 2025 through Wednesday's close. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Coinbase Stock Gets a New Top Wall Street Bull After Tuesday's 12% Pop
Bernstein analysts hiked their price target for Coinbase to $510 from $310 after the crypto trading platform's stock jumped 12% Tuesday. The analysts called Coinbase "the most misunderstood company in our Crypto coverage universe," pointing to a bearish consensus among Wall Street analysts, adding that "the bear thesis on Coinbase has not played out." With this week's gains, shares of Coinbase have added over 40% in 2025 so (COIN) has a new Street-high price target after the crypto trading platform's stock jumped 12% Tuesday. Bernstein analysts hiked their target for Coinbase to $510 from $310 on Wednesday, well above any other target tracked by Visible Alpha. The stock was up about 2% in recent trading just above $351, after surging as much as 7% earlier in the session. Bernstein called Coinbase "the most misunderstood company in our Crypto coverage universe," pointing to a bearish consensus among Wall Street analysts, despite the company's dominant position in consumer cryptocurrency trading and institutional crypto services. The mean target of brokers surveyed by Visible Alpha at $273 would suggest a decline from Wednesday's level. "The bear thesis on Coinbase has not played out," Bernstein analysts said, adding "Coinbase's market share has been persistent despite new competition." "Traditional brokerage competition is several months away from launch, which is an eternity on crypto timelines. And we believe, the traditional Crypto brokerage launches are likely not even going to be full suite products," they said. Coinbase shares have surged in recent weeks as Congress made progress on passing legislation related to the crypto industry, with a show of renewed confidence from investors like Cathie Wood, whose firm Ark Invest bought up more shares of Coinbase earlier this week. The stock has added over 40% of its value in 2025 so far. Read the original article on Investopedia Sign in to access your portfolio
