Tesla Earnings: 2024 Will Be Running on a Low Battery as Growth Slows

Our key takeaway from the Tesla earnings call was the firm's strategic shift to the development and ramp-up of the new affordable sport utility vehicle, while focusing on cost cuts for its existing vehicles. This marks a change from the 2023 strategy, which was to cut prices to generate strong volume growth. We updated our forecast for lower near-term deliveries growth and lower near-term automotive gross profit margins. As a result, we reduce our fair value estimate to $200 per share from $210. We maintain our narrow-moat rating.