Karl Brauer of iSeeCars on Friday said that he does not believe Tesla Inc. TSLA can achieve Elon Musk’s target of 20% to 30% sales growth in 2025 even with a lower-priced model.
What Happened: “The ramp-up time just to produce an all-new model is going to take longer… Elon likes to talk big numbers, he is famous for that but I am not sure that’s realistic,” Brauer said in an appearance on CNBC.
Tesla, however, needs an affordable model, the analyst said, while adding that the company’s latest addition to its lineup- the Cybertruck- was too expensive to create a major surge in sales.
China has an exceptional ability to manufacture low-cost EVs while being financially successful, Brauer said, while adding that even if Tesla releases a lower-cost EV, it will likely not have the same profit levels as BYD and other rival Chinese EV makers.
Why It Matters: The year 2024 marks the first year that Tesla's annual deliveries have fallen (1.1%) as compared to the previous year. In 2023, Tesla delivered 1,808,581 vehicles around the globe.
To mark a growth over last year, the company had to deliver at least 514,926 vehicles in the three months through the end of December. However, the company could not even breach the 500,000 target.
The company reported on Thursday that it delivered just 495,570 BEVs in the three months, below analyst estimates, raising doubts about the company’s future sales.
During Tesla’s third-quarter earnings in October, the company said that it is preparing to launch new vehicles, including more affordable models, starting in the first half of 2025. The lower-cost offering is expected to revive the company’s aging car lineup and drive sales growth.
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