Investing.com - Investors will likely be debating if Tesla (NASDAQ: TSLA )'s car deliveries can "grow meaningfully" over the next two years once the electric carmaker unveils its latest earnings this week, according to analysts at Goldman Sachs.
In a note to clients on Monday, the analysts predicted that Tesla will maintain its prior target for 20% to 30% year-on-year growth in deliveries in 2025, although they are projecting an uptick of 12% and Visible Alpha consensus estimates see the figure at 14%.
Yearly deliveries of Tesla's core EVs fell for the first time in 2024, as the company grappled with a shift in US consumer preferences to lower-cost hybrid options and intensifying competition from cut-price players in China.
CEO Elon Musk, who initially projected "slight growth" in annual deliveries, had moved to roll out a host of promotions like interest-free financing and free-fast charging to help bolster demand.
The Goldman Sachs analysts flagged that the speed at which Tesla reveals a refreshed Model Y offering, as well as the timeline for the launch of planned cheaper models, will be a "key variable in terms of how fast Tesla grows".
Traders will also be focused on the implications of the potential removal of a major Biden-era tax credit for EV purchases under the new Trump administration, the analysts said.
Meanwhile, attention could swirl around Tesla's plans for AI and its so-called Full Self-Driving supervised autopilot software, they added. Musk has recently signaled a desire to pivot Tesla towards AI and autonomous driving in the midst of recently sluggish demand for electric cars.
Tesla is due to release its quarterly earnings after the closing bell on Wall Street on Wednesday.