November 19, 2024 - Analysts at Bernstein caution that Tesla may face significant challenges due to potential changes in U.S. tax policies and tariffs under the new presidency. The report suggests that the elimination of tax incentives, such as IRA credits, and increased tariffs on Chinese batteries could adversely affect Tesla's operations.
Bernstein also highlights that deregulation may not resolve Tesla's structural issues. The Full Self-Driving (FSD) technology, after four years of development, has yet to achieve full autonomy and is currently under investigation by U.S. auto safety regulators. Analysts express concerns that increased tariffs and the removal of tax incentives could pressure profit margins.
The Tesla stock continues to trade at a high price-to-earnings ratio, exceeding those of traditional automakers and tech giants like Apple. Competition in the autonomous driving sector is intensifying, particularly from firms like Google Waymo. Bernstein maintains its view that current market valuations for Tesla exceed its long-term potential.
In Europe, Tesla is also under scrutiny. The expansion of its Berlin factory in Grünheide has led to protests from environmental activists opposing the development. Recent conflicts regarding ordnance search operations indicate that Tesla will continue to face local resistance.
Despite a recent rally in Tesla's stock and increased price targets from other firms like Barclays, Bernstein remains cautious, warning of overvaluation and political risks.