Analysts at Deutsche Bank Research continue to see downside risk for Tesla (NASDAQ:TSLA) ahead of the electric vehicle maker’s 3Q earnings report, scheduled to be released after the closing bell Wednesday.
Late last month, the research firm cut 3Q delivery estimates for the automaker to 440,000 vehicles from 455,000 vehicles, representing a 6% drop. According to the analysts, the drop was issued primarily due to global plant downtime for upgrades and Project Highland.
“Looking at 2024, however, we see considerable downside risk to earnings expectations, due to much lower volume outlook than the market believes,” the analysts wrote at the time.
Deutsche Bank also expressed concerns at the time that the company’s lower delivery numbers may heighten the risk of Tesla reporting earnings below expectations next year.
Deutsche Bank's projections for 2024 suggest approximately 2.1 million deliveries, a figure that falls short of the consensus estimate of roughly 2.3 million deliveries among analysts.
Shares of TSLA are down 1.24% in early trading Wednesday morning.