Tesla’s longtime bear, Toni Sacconaghi, foresaw more tumultuous times for the electric vehicle maker following its annual shareholder meeting. “Elon Musk has repeatedly reiterated that the next 12 months will be difficult for Tesla and attributed his caution to macro issues, which are inconsistent with the relatively constructive outlook for the industry.” broader auto industry,” Bernstein analysts wrote Wednesday in a note to clients. “We believe Tesla’s challenges instead stem from its limited model lineup, and 2024 could be even more challenging.” At Tuesday’s annual meeting, CEO Elon Musk vowed to deliver Tesla’s first Cybertrucks in 2023, while also sharing expectations for a tough economy ahead. After the event, Musk told CNBC’s David Faber that he believes the Federal Reserve may be too slow to cut interest rates in the near term and defended some of his heavily criticized tweets. According to Sacconaghi, many of Tesla’s challenges come from its limited model lineup and “unrealisticly aggressive” ambitions for the Model 3 and Model Y and their addressable markets. “Tesla’s volume target is for Model 3 + Y to have a total of 3-4 million units, representing almost 50% of the global market share in their categories – unrealistic in our view, due to how highly fragmented the global auto market is and the fact that a significant portion of potential buyers remain skeptical of EVs and are unlikely to switch from ICE in the near term,” he noted. The perennial Tesla bear retains an underperforming rating and a $150 price target for the stock, reflecting a roughly 10% drop from Tuesday’s closing price. Shares were up nearly 4% on Wednesday, building on gains of more than 39% year-to-date. Bernstein also views the company’s plans to launch and scale a new mass-market vehicle before 2025 as overly optimistic, noting that production for the company’s Cybertruck has been pushed back two years. TSLA YTD Mountain Tesla Stock in 2023 Elsewhere, analysts remain “sceptic” about upbeat comments about Tesla’s Optimus robot and its long-term contribution to the company’s value, citing the rationale. due to “incredible technical complexity” and cost. The company’s plans for full self-driving capabilities mark another area of concern. Despite Musk’s expectations of the FSD’s acceleration, the regulatory and consumer hurdles could take years to resolve, Sacconaghi said. “Musk acknowledges that technical improvements in FSD are non-linear, requiring constant architectural redesign, which seems to make incremental improvements increasingly difficult,” he added. – CNBC’s Michael Bloom contributed reporting