Tesla Shares Are Officially Down 40% This Year—Here’s Why The Stock Could Fall Further (2024)

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Tesla Shares Are Officially Down 40% This Year—Here’s Why The Stock Could Fall Further (2024)

FAQs

Why is Tesla's stock going down? ›

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.

Why is Tesla losing market share? ›

The first reason for Tesla's decline is obvious. Growth can't continue forever, especially when the range is still limited and quite old. The Model 3 received a refresh in 2023 but it dates to 2017. The Model Y is already five years old, and the Model S goes way back to the early 2010s.

Why is Tesla stock price crashing? ›

Falling sales and rising costs is not usually a recipe for strong profits, and this proved true for Tesla, too. The company's operating profit margin shrank by more than a third, to 6.3%. Operating profits fell one-third to $1.6 billion. Net profits cratered -- down 45%.

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.

Why is Tesla struggling? ›

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

Is Tesla in financial trouble? ›

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 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.

Why is Tesla in loss? ›

The report attributes Tesla's lack of plans for further investment in India to the company's financial challenges. Tesla has experienced a second consecutive decline in global deliveries this quarter and is facing heightened competition from China.

How much is the cheapest Tesla 2024? ›

A Tesla can be priced as low as $38,990 or as high as $113,630 in 2024, depending on the model and added features. The cheapest Tesla model is the base Model 3 Rear-Wheel Drive, starting at $38,990. This is less than the average cost of an electric car, which is about $55,000.

Who are the biggest shareholders of Tesla? ›

Shareholders: Tesla, Inc.
NameEquities%
Elon Musk 12.87 %411,062,07612.87 %
Vanguard Fiduciary Trust Co. 7.438 %237,623,2397.438 %
BlackRock Advisors LLC 4.566 %145,865,6024.566 %
STATE STREET CORPORATION 3.567 %113,968,3643.567 %
1 more row

Is Tesla in a bubble? ›

Tesla is the biggest stock bubble in history and shares are headed to $15, short seller says. Tesla's valuation is far too high, according to short-seller Per Lekander. Lekander predicted the EV maker's stock would plunge to $15 a share, implying a 91% decline.

Is Tesla share overpriced? ›

Investors may also be shunning Tesla's stock because they think it is overvalued. Its price is about 50 times the earnings per share that analysts expect Tesla to generate next year. The wider stock market trades at a much lower multiple — 20 times.

Is Tesla a buy hold 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.

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.

Does Tesla pay dividends? ›

Tesla has never declared dividends on our common stock. We intend on retaining all future earnings to finance future growth and therefore, do not anticipate paying any cash dividends in the foreseeable future.

Is Tesla a buy or sell stock? ›

Is Tesla stock a Buy, Sell or Hold? 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.

Why did Tesla profits drop? ›

The company also laid off more than 10% of its employees to cut costs, and Tesla said profit was also weighed down by restructuring charges and an increase in operating expenses largely driven by artificial-intelligence projects.

Will Tesla stock go up after earnings? ›

For Tesla, current options pricing implies shares will move roughly 9%, up or down, following earnings. That is in line with recent reactions to Tesla's earnings.

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