Tesla unlikely to grow sales, Robotaxi success faces rocky road; Bernstein says

Investing.com -- Tesla Inc (NASDAQ:TSLA) is unlikely to grow annual sales this year even with price cuts, Bernstein says, warning of a rocky road ahead for the EV maker that is unlikely to be rescued by the launch of robotaxis.

"[W]e think it is unlikely that Tesla will grow units this year even assuming lower prices and/or very favorable financing," analysts at Bernstein said in a Wednesday note.

Tesla reported Wednesday, Q3 deliveries of 435,059 that fell short of Wall Street estimates of about 461,000. 

The analyst expects Tesla to deliver about 1.8 million units in 2024, below the company's target of 2 million, representing flat growth year-over-year.

Hopes that a new lower-priced Tesla vehicles, which the company said would start production in H1 2025, aren't likely to move the needle on demand, the analysts forecast. The tweaks are likely to be "modest," while a lower cost Model 2 arriving in volume before 2026 is unlikely. 

While Tesla delivery updates don't carry the clout they once did as investor focus has now shifted to the company's robotaxi, Bernstein warns that the EV maker not only faces stiff competition but also regulatory hurdles to leapfrog competitors. 

"Tesla is behind in gaining regulatory approval for robotaxis...and it may be difficult to overcome without local, ongoing trials," it added, just days ahead of the Tesla's robotaxi event slated for Oct. 10.

Looking ahead, Tesla is likely to "face the same challenges next, with an older product lineup and as competition further intensifies," Bernstein said, reiterating its underperform rating on the stock.