Electric-vehicle demand could bottom out later this year, Morgan Stanley says.
Morgan Stanley says an imbalance of EV supply and demand which could weigh on Tesla this year. Though the world’s supply of electric vehicles is on the rise, demand looks to be weakening, analysts said, pointing to indicators like Tesla’s price cuts in China, fewer vehicles qualifying for tax incentives, and rental giants, like Hertz, cutting their supply of Teslas.
“Looking ahead, are we approaching maximum market negativity on EVs? We believe the trough may happen towards the latter part of 2024,” the bank said in a note, citing influences stemming from the EU Parliamentary and US presidential elections.