Electric vehicle stocks are still under pressure.
Still, you may want to consider accumulating some of the top names, including Tesla (SYM: TSLA).
For one, electric vehicles sales are expected to be “robust” this year, with demand set to accelerate over the next decade, according to a new International Energy Agency report.
Two, as noted by Electrek.co, “Rising EV sales are set to remake the global auto industry and significantly reduce oil consumption for road transport, according to the new edition of the IEA’s annual Global EV Outlook, released today.”
According to the report, global EV sales could reach 17 million by the end of the year. Sales in China are projected to jump to about 10 million, it added. In the U.S., about one in nine cars sold will be electric. And in Europe, about one in four. In addition, if the world is to accelerate the greater adoption of EVs, the number of EV charging stations will need to grow about six-fold by the time 2035 rolls around, as well.
That could be great news for Tesla.
Sure, Tesla earnings were a disaster. Its adjusted EPS of 45 cents missed expectations for 51 cents. Revenue of $21.3 billion was also below expectations for $22.15 billion.
“In its shareholder deck, Tesla reiterated a pessimistic outlook for 2024, telling investors that “volume growth rate may be notably lower than the growth rate achieved in 2023,” said CNBC.
Free cash flow went negative with a deficit of $2.53 billion—which it attributes to a $2.7 buildup of inventory and a $1 billion in capex spending on AI infrastructure.
However, Tesla did mention that it will speed up the launch of new models, including a lower-cost vehicle. In addition, analysts at Bank of America just upgraded TSLA to a buy rating, noting the latest results were “better than feared” and “cleared the deck of negative catalysts.”
