Can Musk's Ambitious Sales Forecast Defy Analysts' Predictions?

Tesla CEO Elon Musk aims for a 20-30% vehicle sales growth next year despite skepticism from analysts. Tesla faces challenges such as slowing global EV sales, rising competition, and its founder's controversial public persona impacting the brand's image and demand.

Tesla CEO Elon Musk has left investors and analysts scratching their heads with a bold prediction of a 20-30% increase in vehicle sales for next year, a leap heavily reliant on a new, more affordable model and hopes for self-driving technology. But skepticism abounds on Wall Street.

Facing sluggish demand for its aging lineup, Tesla also contends with a global EV market slowdown and stiff competition in critical markets like China and the U.S. Most analysts, including those at Deutsche Bank and RBC, see growth closer to 12-13%.

Defying the odds, Tesla is leaning on promotions for its advanced driving software and the awaited Cybertruck. Yet, Musk's controversial politics may erode customer interest, making it crucial to deliver on new, affordable vehicles and maintain profit margins.

(With inputs from agencies.)