Why is Tesla stock losing money? (2024)

Why is Tesla stock losing money?

Tesla shares plunged 29% in the first quarter, the worst period for the stock since the end of 2022 and the third-steepest quarterly drop on record. Investors are concerned about auto sales as the company faces increased competition from China and disruptions in Europe.

Why is Tesla stock dropping?

Tesla shares were down at $141.1 on Monday. The shares have lost about 41% of their value so far this year with surveys and experts saying Musk's tilt toward right-wing politics and polarizing public statements turned away some prospective buyers of its cars.

Why is Tesla stock price crashing?

The drop has been triggered in part by aggressive EV price cuts, narrowing profit margins and a strategy shift that looks to prioritize self-driving technologies over traditional car production in the coming years.

Should I hold Tesla?

According to S&P Global Market Intelligence, the consensus analyst target price for Tesla stock is $186.95, representing implied upside of 13% to current levels. Meanwhile, the consensus recommendation is a Hold. Aside from Ark Invest, Wedbush is one of the more bullish firms on the Magnificent 7 stock.

Why are Tesla sales down?

DETROIT (AP) — Tesla sales fell sharply last quarter as competition increased worldwide, electric vehicle sales growth slowed, and price cuts failed to lure more buyers.

What will Tesla stock be in 2025?

What is a good price for Tesla stock?

The average price target for Tesla is $177.30. This is based on 35 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $310.00 ,the lowest forecast is $22.86. The average price target represents 11.51% Increase from the current price of $159.

Is Tesla a good stock to buy?

Tesla still has a high ceiling to grow vehicle deliveries over the long term, so investors can see a strong return on their investment. But as long as Tesla reports falling revenue and shrinking volumes, there's no reason for the stock to move higher anytime soon.

What's wrong with Tesla stock?

Tesla's stock price has dropped by nearly a third in 2024 as the company's sales numbers and profits have disappointed. It's been one of the worst performers in the S&P 500 so far this year. Last year, Tesla sales were up 38% compared to 2022, but investors had expected more.

Will Tesla stock go up in 2024?

Wall Street consensus has 2024 Tesla earnings firmly below 2023's level. That signals another year of earnings declines for this growth stock. Wall Street currently expects Tesla earnings per share of just $2.70 in 2024, according to FactSet.

Is Tesla a buy or sell now?

Gianarikas is relatively bullish on Tesla shares, rating them Buy with a price target of $234 a share, though he expects numbers will look weak. Wall Street is projecting operating profit margins of just under 7%, down from about 11% in the first quarter of 2023 and down from about 19% in the first quarter of 2022.

Is Tesla buy or sell?

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 45 buy ratings, 32 hold ratings, and 16 sell ratings.

Is Tesla a good stock to hold long term?

Currently, 32 Wall Street analysts follow Tesla stock, and they have a consensus “buy” rating on the company. Their average 12-month price target is $207.30, marking a potential gain one year out of about 27%.

Is Tesla on the decline?

Tesla's deliveries declined by 8.5% in the first quarter to 386,810 vehicles from a year ago and the company produced 433,371 vehicles during the period. Wall Street had expected Tesla to deliver 454,200 vehicles, according to the average projection of 18 analysts polled by Visible Alpha.

Are electric cars sales declining?

California has been at the forefront of a booming electric vehicle market, but recent trends show signs of fatigue. EV sales significantly declined in the latter half of 2023 for the first time in over a decade.

Is Tesla losing sales?

Tesla's sales dropped 13 percent in the first quarter, compared to Q1 in 2023. Meanwhile, its biggest competitors, like BMW, Mercedes, Hyundai, and Kia, saw EV sales go up by double or even triple-digits.

Can Tesla stock reach $1000?

It's unlikely Tesla's returns going forward will come anywhere near resembling the last five years. So, investors shouldn't expect a $1,000 price per share by the end of the decade.

Does Tesla stock have a future?

In fact, analysts on average now expect that it will take until 2026 for Tesla to exceed the level of profitability it posted in 2022. That, however, does not mean the shares are cheap. At 59 times forward earnings, Tesla's the most expensive member of the Magnificent 7 group of big tech companies.

Is Tesla stocks gonna go back up?

Wall Street expects Tesla earnings per share of just $2.96 a share in 2024, according to FactSet. That would be a around a 5% decline vs. last year's $3.12. That was a 23% decline vs. 2022. Analyst project a solid increase in 2025 to $4.13 a share.

Who owns the most Tesla stock?

The largest individual Tesla shareholder is Elon Musk, who owns about 13% of the company's common stock. Vanguard and BlackRock are the two largest institutional investors, owning about 7.2% and 5.9% of outstanding shares, respectively.

Who are Tesla's largest shareholders?

Will Tesla pay a dividend?

Does Tesla pay a dividend? Does it plan to? 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.

Who is buying Tesla stock?

Don't miss: Cathie Wood's ETFs are now buying Tesla's stock. As of Friday, Tesla's stock is the ARK Innovation ETF's largest holding with a 9.75% weighting, above No. 2 holding Coinbase Global Inc. (COIN), which had an 8.98% weighting.

Is Tesla stock high risk?

The company has an average financial risk score of 2.61, driven by its healthy liquidity and cash flow ratios.

Is Tesla a profitable stock?

Excluding one-time items such as stock-based compensation, Tesla made 45 cents per share, falling short of analyst estimates of 49 cents, according to FactSet. The company's gross profit margin, the percentage of revenue it gets to keep after expenses, fell once again to 17.4%.