Investing.com - Tesla Inc (NASDAQ:TSLA) is likely to focus on plans to build out its artificial intelligence capabilities and moderate expectations for annual vehicle sales growth in its latest quarterly results, according to analysts at Oppenheimer.
In a note to clients on Thursday, the analysts said they expect the electric vehicle (EV) giant -- which is expected to report its fourth-quarter earnings on January 29 -- to back an "aggressive" narrative around its ambitions for AI and its so-called Full Self-Driving supervised autopilot software.
CEO Elon Musk has been recently signaled a desire to pivot Tesla towards AI and autonomous driving in the midst of recently sputtering demand for electric cars.
Yearly deliveries of Tesla's EVs fell for the first time in 2024, as the company grappled with a shift in US consumer preferences to lower-cost hybrid options and intensifying competition from cut-price players in China. Musk, who initially projected "slight growth" in annual deliveries, had moved to roll out a host of promotions like interest-free financing and free-fast charging to help bolster demand.
Tesla is tipped to ease its near-term vehicle growth expectations as part of its shift to AI and autonomous driving, the Oppenheimer analysts said.
The analysts also lowered their estimates for Tesla's fourth-quarter deliveries and revenue to 1.79 million units and $99.5 billion, respectively, down from their prior projections of 1.81 million and $100.3 billion.
Meanwhile, Musk is anticipated to highlight his impact on the US political landscape, the analysts said. Musk has become a close advisor of US President Donald Trump, and is set to helm a new advisory body called the Department of Government Efficiency -- or DOGE -- that is tasked with reducing the size of the federal government.
The relationship between Trump and Musk comes with "significant risk", however, that could jeopardize Tesla's ability to benefit from it, the analysts flagged.
"We see DOGE's success as the first test of Trump/Musk's relationship and precursor to Trump supporting [Tesla]'s regulatory agenda," they said.