Deutsche Bank advised that Tesla (TSLA) is still a Buy despite the disappointing Q4 report.
“Beyond the quarter, we expect challenging headlines around demand softening and associated price cuts to continue; recent reports already suggest Tesla may take an extended shutdown in Shanghai later this month around Chinese New Year,” Deutsche Bank’s analysts acknowledged. “Further price actions will likely be implemented to align demand with supply, but we continue to believe the company remains best positioned to weather the current macroeconomic conditions, leveraging price to support volume growth, while using various cost levers to protect margins.”