According to analysts at Global Equities Research, there will be a demand recovery for Tesla (NASDAQ:TSLA) starting in August 2023. The analysts suggest that the recovery in demand is linked to the recent wave of layoffs in the tech industry, as many of the laid-off workers are now finding new employment opportunities in the field of artificial intelligence (AI).
The analysts point out that the majority of tech layoffs are expected to be completed by July. They highlight that during recent hackathons, around 60% of participating hackers had experienced job losses. These individuals are now reinventing themselves in the AI sector and receiving multiple job offers, albeit at slightly lower salary levels (around 5-10% lower) compared to their previous tech positions before the layoffs.
The analysts predict that Tesla’s revenue will hit its lowest point in Q2 but expect a slight recovery in Q3, with demand normalizing by Q4. Looking ahead, they foresee Tesla experiencing revenue growth rates of 50% or more in 2024.