Goldman Sachs (Goldman Sachs) lowered Tesla's 2023 and 2024 earnings per share (EPS) estimates, mainly due to lower average sales prices and lower automobile gross margin (without credit assumptions)(S/X price reduction, followed by Model Y price reduction, partially offset by hypothetical increase in Model 3 ASP). Tesla drastically cut the price of the S/X by 15%-19% on September 1, and cut the price of the Model Y in China in mid-August (inventory in other markets such as the US has been discounted this quarter). However, Tesla raised the pricing of the Model 3, and the updated Model 3 is currently being sold in Europe and China.
Additionally, although Tesla's sales data for July and August in major regions was higher than in the first two months of the second quarter, Goldman Sachs lowered its 3Q23 sales forecast to 460,000 units to better reflect the decline in S/X demand and the impact of the Model 3 Highland replacement.This is in line with China's weekly insurance data. However, driven by the launch of the updated Model 3, 4Q23 sales are expected to rebound to 494,000 units, and it is assumed that S/X sales will improve after a sharp price cut, bringing the delivery forecast for 2023 to 18.42 million units.
Tesla is likely to cut prices even further in 2024...