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 dropping? ›

Tesla's nightmarish start to the year saw its January earnings reveal significant misses for both sales and profits; a 9% year-over-year decline in first-quarter vehicle deliveries, far short of forecasts of 7% growth; and comes ahead of the company's first batch of 2024 financial results Tuesday, which analysts expect ...

Why is Tesla struggling? ›

But now the company is struggling with falling car sales and intense competition from Chinese brands, as well as problems with its much-hyped Cybertruck. Lower sales have hit its revenues, and hurt its profits. Its share price has fallen by more than a quarter since the start of the year.

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.

Is Tesla having a bad year? ›

But the shares have hit a very rough patch, and are down more than 40% in 2024. Tesla is the second-worst performer in the S&P 500, and the company's market value fell below $500 billion last week.

Will Tesla stock recover in 2024? ›

That signals another year of earnings declines for this growth stock. Analysts currently expect Tesla earnings per share of just $2.43 in 2024, according to FactSet. That would be a 22% decline vs. $3.12 in 2023. Wall Street's 2024 EPS consensus estimates for Tesla have come down 36% since the end of 2023.

Why is Tesla not a good stock to buy? ›

Stock valuation: Tesla is a high-growth stock. With uncertainty around the company's affordable vehicle and declining deliveries, its stock sold off heavily in early April as market sentiment turned against its growth prospects.

Do Tesla's have major problems? ›

Tesla, the pioneering electric vehicle (EV) manufacturer, has gained immense popularity due to its cutting-edge technology, sleek design, and eco-friendly appeal. However, Teslas are not immune to breakdowns and maintenance issues like any other vehicle.

Why are Tesla's losing their value? ›

Competition From Other EV Automakers

Pre-owned Teslas are trading at lower sticker prices as the company fights to regain its dominance in the suddenly crowded EV market. “This was a natural development as more competitors entered the market.

Why is it decreasing for Tesla? ›

Last quarter, Tesla posted its first annual sales decline since the pandemic — a drop that was significantly worse than expected. The company blamed a weak Chinese economy, arson at its German factory and supply constraints because of escalating conflict in the Middle East.

What are the negatives of owning a Tesla? ›

Maintenance and Insurance Costs

Later down the road, you may also have to replace the battery, which can cost up to $16,000. However, Tesla batteries come with an eight year/150,000-mile warranty. With these high repair costs come potentially high insurance premiums.

How in debt is Tesla? ›

Total debt on the balance sheet as of March 2024 : $9.91 B

According to Tesla's latest financial reports the company's total debt is $9.91 B. A company's total debt is the sum of all current and non-current debts.

Why is Tesla stock crashing? ›

NASDAQ: TSLA

After years of ever-rising deliveries of its popular electric vehicles (EVs), the company has crashed head-first into economic reality. Demand for EVs is softening, so much so that traditional automakers are pulling back on their ambitious plans. In China, cheaper alternatives are eating Tesla's lunch.

Why is Tesla stock performing so poorly? ›

Coming into earnings, Tesla stock was badly beaten up, down 42% this year. Shares were also down about 17% since Tesla reported weaker-than-expected first-quarter deliveries of about 387,000 units. Tesla acknowledged that EV sales around the globe are struggling while car makers pivot back toward hybrids.

Is Tesla having problems? ›

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 are Tesla prices going down? ›

Tesla is slashing prices in the U.S., China and Germany as the electric vehicle maker battles slowing sales and an increasingly competitive market for EVs.

Why did Tesla stock crash so much? ›

After years of ever-rising deliveries of its popular electric vehicles (EVs), the company has crashed head-first into economic reality. Demand for EVs is softening, so much so that traditional automakers are pulling back on their ambitious plans. In China, cheaper alternatives are eating Tesla's lunch.

What is the prediction for Tesla stock? ›

TSLA Stock 12 Month Forecast

Based on 32 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $174.60 with a high forecast of $310.00 and a low forecast of $22.86. The average price target represents a -1.95% change from the last price of $178.08.

Why did Tesla market share drop? ›

Layoffs, diminishing sales, a cloudy future, a distracted boss — all of these factors seem to signal a company in dire straits. Even the Cybertruck, Tesla's great stainless steel hope, is being recalled over a faulty accelerator pedal.

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