In the latest developments for Tesla (TSLA) stock, analysts have revised the price targets, expressing concerns about the company's future vehicle deliveries and declining profit forecasts. Jefferies analyst Philippe Houchois lowered the Tesla stock price target from $185 to $165, while Piper Sandler analyst Alexander Potter cut their price target from $225 to $205.

Houchois expects Tesla to deliver 1.77 million vehicles in 2024, projecting a decline compared to the record-breaking 1.81 million deliveries in 2023. He also reduced his estimates for 2024 EBIT and EPS by approximately 30% to $6.5 billion and $1.87, respectively. The upcoming first-quarter earnings report, scheduled for April 23, is anticipated to bring more uncertainty, including questions about product priorities and leadership, according to Houchois. Furthermore, Jefferies anticipates a heavily negative cash burn for Q1.

Piper Sandler is also forecasting a decline in full-year deliveries, projecting a slip to 1.79 million vehicles. Meanwhile, Baird analyst Ben Kallo estimated that 2024 deliveries will reach 1.84 million, but noted that second-quarter deliveries are likely to decline compared to the previous year. The consensus view provided by FactSet currently stands at 1.94 million deliveries, but this number is expected to be adjusted following Tesla's worse-than-expected Q1 delivery results.

Adding to concerns about Tesla's performance, vehicle insurance registrations in China reportedly experienced a significant decline. According to CnEVPost, Tesla's vehicle insurance registrations in China for the week of April 1-7 totaled 1,880, marking a decrease of around 40% compared to the previous quarter and a 70% decline compared to the same period in 2023. Analyst Ben Kallo stated, "There is no denying that the demand environment has deteriorated."

As a consequence of these developments, Tesla stock fell 2.5% to $172.43 during market action on Wednesday. However, the stock had gained more than 2% on Tuesday, reaching $176.88. The stock has seen a weekly increase of 7.3% up to this point.

The declining earnings forecasts have also raised concerns among Wall Street analysts. FactSet data reveals that the consensus estimate for Tesla's earnings per share (EPS) in 2024 is $2.71, representing a more than 13% decline from the previous year's EPS of $3.12. Wall Street's EPS consensus estimates for 2024 have dropped by 29% since the end of 2023, indicating the potential for further cuts in the earnings forecast. Some analysts even suggest that earnings could decline to a level similar to the 2021 EPS of $2.26. Looking ahead to 2025, Wall Street consensus expects Tesla's EPS to reach $3.72, down from the $5.29 projection at the end of 2023.

In separate news, reports circulated regarding Tesla's decision to cancel its long-awaited low-cost vehicle, the Model 2, and instead focus on developing its self-driving robotaxi platform. Internal messages and anonymous sources cited by Reuters revealed that Tesla will continue developing the robotaxi on the "same small-vehicle platform." However, CEO Elon Musk and others at Tesla have challenged the accuracy of the report. Musk also declared that Tesla will unveil the robotaxi on August 8.

Amidst these developments, Tesla stock experienced a dip of 6.2% last week, including a 3.6% decrease on Friday, closing at $164.90. Notably, prominent investor Cathie Wood purchased nearly 453,000 shares of Tesla during the week. The stock is currently trading below the 50-day moving average after experiencing a 13% decline in March.

As Tesla strives to navigate these challenges, the company also rolled out its latest full self-driving update to customers, offering a one-month free trial of the system for April. Elon Musk's emails, leaked on social media, highlight his commitment to installing and activating the latest version of Full Self-Driving (FSD) on vehicles and ensuring customers experience a "short test ride" before taking delivery.

When it comes to Tesla's position within the auto industry, the company ranks eighth in the 35-member IBD Auto Manufacturers industry group. It currently holds a 32 Composite Rating out of a possible 99 and has an 11 Relative Strength Rating and a 67 EPS Rating.

As Tesla's first-quarter earnings report approaches, investors and analysts remain cautious about the company's future prospects, particularly in light of declining vehicle deliveries, profit forecasts, and uncertainties surrounding the development of the robotaxi platform.