![EV slowdown is not showing any evidence of an inflection - RBC Capital Markets](https://i-invdn-com.investing.com/news/LYNXNPEB9M0BY_L.jpg)
© Reuters. EV slowdown shouldn’t be exhibiting any proof of an inflection – analyst
Analysts at RBC Capital Markets stated one of many key takeaways from the present earnings season is that the electrical car (EV) market “is not showing any evidence any evidence of an inflection.”
Tesla (NASDAQ:)’s 2024 supply outlook suggests considerably decrease development in comparison with 2023, attributing the cautious forecast to unsure financial circumstances equivalent to affordability and rates of interest.
This has led to a consensus expectation of a 14% enhance in deliveries for 2024, a pointy decline from the 40% development seen in 2023, amid issues that value reductions could also be crucial to fulfill these projected volumes.
Meanwhile, Ford (NYSE:) reported a worsening in its EV losses for the fourth quarter of 2023, with the loss deepening to $1.57 billion from $1.329 billion within the earlier quarter, and anticipates even greater losses for 2024, surpassing consensus estimates.
In abstract, legacy OEMs “could be better positioned versus Pure Play EV names,” analysts write.
“In particular, names less exposed to EV fixed cost base (Stellantis (NYSE:)) or demand issues (Ferrari (NYSE:)),” they added.
In the meantime, the pursuit of Level 4 autonomous driving continues to face obstacles, indicating that important limitations to full automation stay.
“Focus will likely be on Level 2+ efforts for the time being. OEMs might shift to outsourcing to suppliers more than pursuing autonomy inhouse. Mobileye SuperVision and Tesla FSD are consistent with this narrative,” analysts stated.
“We are not expecting a major Tesla FSD licensing announcement anytime soon, but should attach rates increase on existing Teslas, it could be an important catalyst for shares. This could come from price cuts to FSD,” they added.
Lastly, issues relating to extreme stock buildup amongst suppliers seem like largely unfounded, suggesting that the fears of a list glut could also be exaggerated and are moderately particular to Mobileye.