Downside risk for Tesla EPS is still present, according to Deutsche Bank

In advance of the publication of Tesla's 3Q earnings report, which is planned for Wednesday after the closing bell, analysts at Deutsche Bank Research continue to see downside risk for the electric car manufacturer.

Late last month, the research company reduced the automaker's 3Q delivery forecasts from 455,000 to 440,000 vehicles, a 6% decrease. The experts claim that Project Highland and worldwide plant downtime for improvements were the main causes of the dip.

However, the analysts said that "looking ahead to 2024, we see considerable downside risk to earnings expectations, due to much lower volume outlook than the market believes."

At the time, Deutsche Bank also voiced worry that the company's lower delivery figures may increase the likelihood that Tesla will announce results that are below forecasts in the upcoming year.

According to forecasts from the Bank, there will only be about 2.1 million deliveries in 2024, which is less than the experts' average prediction of about 2.3 million deliveries.

(Sources: investing.com, reuters.com)