On Wednesday, Tesla Inc (NASDAQ:TSLA) retained its Perform rating from Oppenheimer, despite projections that the first quarter of 2024 may not meet expectations. The reaffirmation follows an investor meeting that took place after a planned tour of Tesla's Berlin factory was canceled due to arson targeting the local power supply.
The company is actively addressing the challenges of scaling production and reducing vehicle costs. At the same time, Tesla is advancing its leadership in artificial intelligence for real-world applications. The importance of consistent data collection was highlighted, as Tesla's vehicles gather information that not only enhances its Full Self-Driving (FSD) program but also contributes to the mapping of human and object movement within the built environment.
Although the timeline for the maturity and potential profitability of these technologies is not clear, Tesla is investing in the necessary infrastructure and team to sustain its edge in AI for the physical world.
In the short term, Tesla is experiencing strong pricing for its Highland model and has found it relatively straightforward to shift vehicle volumes from Germany to other European countries, in addition to pursuing growth in new target markets.
March is expected to be a pivotal month for Tesla's first-quarter performance, with concerns over general price softness and a sluggish start to the year's sales. The company's efforts in the coming weeks will be crucial in shaping the final outcomes for 1Q24.
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