Here's Why Tesla Is The Worst-Performing Major Stock This Year (2024)

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Here's Why Tesla Is The Worst-Performing Major Stock This Year (2024)

FAQs

Here's Why Tesla Is The Worst-Performing Major Stock This Year? ›

Tesla's stalling top and bottom lines can be traced to several factors, including higher interest payments and weakening EV demand in the U.S. and Europe, but arguably none more important than its projected slowdown in China, which accounts for about a fifth of Tesla's revenue.

Why is Tesla stock so bad right now? ›

Tesla (TSLA) stock is angling lower, falling 12% so far this year. However, since hitting 2024 highs in July, TSLA shares have declined 20% as the EV giant's second-quarter earnings sank compared to a year ago. Now, investors are awaiting the October robotaxi reveal event.

Is Tesla losing popularity? ›

The situation in the United States is similar. Tesla's sales volume dropped from 324,900 units in the first half of 2023 to 299,200 units this year. Meanwhile, overall BEV sales increased by 7.6 percent in the same period. As a result, Tesla's share dropped from 59.8 percent in 2023 to 51.2 percent in 2024.

Is Tesla in trouble financially? ›

Tesla is in trouble. Yesterday, the company announced that its profits for the first three months of this year fell by 55 percent from the first three months of 2023. Sales declined by 8.5 percent.

Why are Tesla shares losing value? ›

The company's price cuts and incentives pushed automotive gross margins, excluding regulatory credits, down to 14.6% in the second quarter. One of the 50 analysts covering the stock cut their rating, while there were three price target increases and two decreases, according to LSEG data.

Will Tesla bounce back in 2024? ›

Tesla's per-share earnings are also expected to fall 28% in 2024 before rebounding by 39% in 2025.

Why is Tesla stock collapsing? ›

Critics say demand for the company's vehicles has slowed as a result of its failure to release a new, affordable model, as well as a softening in the overall EV market. As competitors roll out alternatives, Tesla faces a difficult path to regain its previous breakneck growth, analysts previously told ABC News.

Is Tesla a success or failure? ›

Tesla deliveries plummeted in the first quarter of 2024, even after the launch of its long-awaited Cybertruck finger guillotine. Year-over-year sales dropped 8.5%—the first decrease since 2020. It's an “unmitigated disaster” for Tesla, analysts point out, even in a slower-than-anticipated EV market.

Why is Tesla not selling? ›

It's more likely that Tesla sales are sluggish because the cars haven't been revised or refreshed in years and people invest in durability, features, safety, and affordability—not a CEO's mindset.

Which state buys the most Teslas? ›

California is crucial for Tesla's business since the EV share of the state's new car market at 21.4% is nearly three times the U.S. average of 7.5% in 2023. Of the nearly 381,000 electric vehicles sold in the state that year across all car brands, six out of ten were Tesla cars.

Why not to invest in Tesla? ›

The electric vehicle (EV) maker, Tesla, has a number of key risks that it will face in the next 5-10 years. Notable risks include Tesla cars being too expensive with tax breaks and that the construction of its Gigafactory (battery factory) taking longer than expected.

Who is Teslas main competitor? ›

Tesla has several competitors among traditional carmakers, such as Ford Motor Company and General Motors (GM). Tesla has succeeded by focusing on premium electric vehicles (EVs). More competition, however, is entering the higher-end electric and self-driving car market. Ford, GM, and BYD Company Ltd.

How financially healthy is Tesla? ›

Is Tesla Financially Stable? Tesla's financial health has substantially improved over the past few years. Tesla ended 2023 with retained earnings of about $27.8 billion after a steady series of annual gains from just $5.4 billion in 2020.

Is Tesla a good long-term stock? ›

With its 3-star rating, we believe Tesla's stock is fairly valued compared with our long-term fair value estimate of $200 per share. We use a weighted average cost of capital of just under 9%. Our equity valuation adds back nonrecourse and non-dilutive convertible debt.

Why is Tesla stock so weak? ›

Most of the decline wasn't due to Tesla-specific news. Instead, investors are digesting the latest data on the labor market released on Friday. The U.S. added 142,000 jobs in August, lower than the 160,000 economists expected, according to FactSet. It's another sign the U.S. economy and labor markets are weakening.

What will Tesla stock be worth in 2025? ›

Tesla Stock Price Predictions for 2025

In 2025, #TSLA could range between $22 and $389 per share based on the most bullish and bearish projections. The bullish outlook reflects projections for surging demand in the electric vehicle industry combined with Tesla's dominant positioning and technical edge.

Why is Tesla struggling? ›

Among the troubles bedeviling the company are sluggish consumer demand and a price war with competitors that has dented profits.

Why not to buy Tesla stock? ›

Notable risks include Tesla cars being too expensive with tax breaks and that the construction of its Gigafactory (battery factory) taking longer than expected. More broadly speaking, Tesla faces a competitive environment from both legacy automakers and other EV manufacturers.

What is the prediction for Tesla stock? ›

Average Price Target

Based on 35 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $205.09 with a high forecast of $310.00 and a low forecast of $24.86. The average price target represents a -5.44% change from the last price of $216.90.

Is Tesla a buy or sell? ›

Tesla stock has received a consensus rating of buy. The average rating score is and is based on 50 buy ratings, 27 hold ratings, and 15 sell ratings.

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