Is Tesla struggling financially?
Key Takeaways. Shares of Tesla fell as Wells Fargo said the EV maker is likely to see no sales growth in 2024. The bank cut its rating on the stock to underweight and lowered its price target to $125 from $200. Tesla's struggling to sell cars even as it lowers prices in various markets, and that's affecting its profit.
Tesla Stock: Q4 Earnings
Wall Street slashed 2024 profit projections after Tesla reported worse-than-expected fourth-quarter earnings and revenue in late January, with longtime Tesla bull Dan Ives summing up the conference call as a "train wreck." Tesla reported that Q4 earnings fell 40% to 71 cents per share.
Shares in Elon Musk's electric vehicle maker fell sharply after the company delivered lackluster quarterly results and declined to give full-year guidance.
Tesla Financial Overview
Tesla's market cap is currently ―. The company's EPS TTM is $4.303; its P/E ratio is 39.38; Tesla is scheduled to report earnings on April 16, 2024, and the estimated EPS forecast is $0.65.
Threat from China
Tesla has been cutting prices for more than a year in an effort to boost sales as it faces intensifying competition from rivals in China. China's BYD beat Tesla in the final three months of last year, selling more cars than Elon Musk's carmaker for the first time.
Shares of Elon Musk's electric-vehicle giant have dropped 26% this month, wiping out $205 billion in market valuation. The stock is on pace to close lower for the sixth straight week, its longest losing streak since 2016. For perspective, at that point Tesla hadn't even launched its first mass-market car, the Model 3.
Tesla shares have been a huge winner for investors mainly due to the company's incredible growth. But one thing is certain: It will be more difficult for Tesla to achieve the rapid growth that it did in the past in the years ahead. That's because competition in the EV industry will only get more intense.
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.
Meanwhile, Tesla enthusiast Dan Ives of Wedbush Securities considers investors' bearishness to be overdone, suggesting that the EV-maker's stock could bounce back 77% in 12 months. To achieve this, Ives emphasized that Musk's compensation package should be improved, while his control of shares should be raised.
Tesla stock isn't a great value right now
Tesla's ability to hold its own in the face of mounting competition is the true test over the next few years. The biggest problem with Tesla isn't its slowdown but its valuation. Analyst consensus estimates for 2024 earnings are $3.05 per share and $4.16 per share in 2025.
Is Tesla still profitable?
Tesla's earnings fell for the first time since 2017
In 2023, it cost Tesla $65.1 billion to manufacture and sell $78.5 billion worth of electric vehicles, which left the company with $13.4 billion in gross profit. DATA PROVIDED BY S&P GLOBAL MARKET INTELLIGENCE, CHART BY THE MOTLEY FOOL.
Total debt on the balance sheet as of December 2023 : $9.57 B. According to Tesla's latest financial reports the company's total debt is $9.57 B. A company's total debt is the sum of all current and non-current debts.
Tesla ended Q4 2023 with a net income of $7.9 billion and the full year with $15 billion in profits.
Bullish Tesla investors also point out that the company's revenue growth beyond 2024 is expected to surpass all of the Magnificent Seven other than Nvidia Corp. Its earnings are also projected to bounce back in 2025 after dropping this year, and will be climbing at a faster pace than most other mega-caps.
The fall in sales in its key market dimmed the outlook for Tesla's global deliveries, at a time when the top EV maker is battling a decline in demand and rising competition, and is weighed down by a lack of entry-level vehicles and the age of its product line-up.
Adding to the challenges, Tesla's management has offered a cautious outlook for 2024. The company anticipates a significant decrease in volumes compared to 2023, falling well below its targeted compound annual growth rate (CAGR) of 50%.
Teslas depreciate because the manufacturer is able to cut costs, so they cut prices on new inventory, to encourage EV adoption. As new prices decline, used prices depreciate to keep pace. By how much does a Tesla car depreciate? They do better than any other car.
After a streak of losses earlier this week, Tesla is no longer one of the U.S.'s top 10 largest companies by market capitalization. The demand for electric vehicles has continued to decline in 2024, even as automakers aggressively slash prices and offer incentives to convince consumers.
Tesla Stock Performance
Wells Fargo downgraded Tesla to underweight, down from equal weight, Wednesday with a price target of 125, down from 200. The firm's underweight rating is equivalent to a sell rating and its price cut represents a 23% downside risk to current TSLA levels.
The U.S. Department of Energy uses 15,000 miles a year as its assumed standard range of annual driving for consumers, which would put Tesla's battery life at between 20 and 33 years. Assuming a single charge a day, that timeframe would involve between 7,300 and 12,045 charge cycles.
What if I invested in Tesla 10 years ago?
This means that your $1,000 10 years ago — technically, $1,002 — would have bought 60 shares of Tesla. As of Mar. 3, 2024, those 60 shares of Tesla would be worth $12,158.40. That marks a 28.342% annual rate of return.
He forecasts Tesla stock to gain about 550% to hit $1,200 a share by 2030, and for SpaceX to triple in valuation over the same period, according to a recent interview conducted by Bloomberg. Baron runs the Baron Focused Growth Fund, which counted Tesla and SpaceX as its largest holdings as of December 31, 2023.
Tesla Inc (Tesla) has a moderate risk profile and is one of the top fifty companies based on our proprietary risk assessment of vehicle manufacturing sector in the automotive industry.
In the intense competition to dominate the US electric vehicle (EV) market, South Korean automotive brands Hyundai and Kia have emerged as Tesla's most formidable competitors.
The average price target for Tesla is $205.22. This is based on 35 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $320.00 ,the lowest forecast is $23.53. The average price target represents 26.29% Increase from the current price of $162.5.
