Wells Fargo analyst Colin Langan meanwhile maintained a Hold-equivalent rating as margins are expected to remain under pressure. He forecast Q1 margins of 17%, missing the consensus expectation of over 20% growth.
“The price cut drove record Q1 deliveries, but TSLA needs higher deliveries to hit its 2M target,” Langan wrote. “This implies a risk of more price cuts, without at least a major refresh. Competition in China has increased, and some EU models in inventory were reportedly reduced mid-quarter.”