Contributing factors are favorable regulatory environments for EVs around the world, rising fuel prices and growing adoption of alternative fuel vehicles. In a 2018 televised interview, she said Tesla would hit $4,000 by 2023. Adjusting for splits, sugar trading Tesla hit that mark two years early in 2021. “If they’re thinking about the greater good of the company, they’ll want to resolve this outside of court action and further litigation,” she said, adding that this would be the most typical route.
Despite those challenges, Tesla still has good growth prospects. But as competition heats up, its growth trajectory may be tempered relative to the company’s history. Tesla’s multiples are high by most standards, though not nearly as high as they were in 2020 and 2021. Still, analysts don’t agree on whether Tesla is overpriced, fairly priced or underpriced. We will be paying attention to see what happens with Elon Musk’s purchase of Twitter because if he starts to sell his TSLA shares to fund this purchase, it will lead to many more questions than answers.
The stock price spiked in July above $290, only to fall to $215 in August. Elon’s intellect and potential might be limitless, but his bandwidth is not. All of it sends mixed signals to a marketplace that does not react well to uncertainty in volatile times. Watching a robot clumsily carried on and off the stage doesn’t help. “They need to come up with a new package and soon because they’re going to lose Musk’s interest in the company,” he told BI.
- Still, the stock’s recent pullback seems to adequately reflect the business’s near-term weakness.
- After announcing that Tesla would have the first semi truck ready for Pepsi by December, there were no additional financial details revealed, as neither Tesla nor Pepsi have commented on the details.
- However, according to Musk’s comments on the earnings call, it could be coming sooner than most investors think.
- The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
- Tesla’s growth potential over the long-term is promising, but the company faces key risks in the short-term, Goldman Sachs warned.
- Earnings for Tesla are expected to grow by 39.94% in the coming year, from $3.18 to $4.45 per share.
Tesla last announced its quarterly earnings data on January 24th, 2024. The electric vehicle producer reported $0.71 earnings per share for the quarter, missing the consensus estimate of $0.75 by $0.04. The company earned $25.17 billion during the quarter, compared to analysts’ expectations of $25.64 billion. Its quarterly revenue was up 3.5% compared to the same quarter last year. Tesla has generated $4.31 earnings per share over the last year ($4.31 diluted earnings per share) and currently has a price-to-earnings ratio of 44.2.
Down 26%, Is This the Beginning of the End for Tesla Stock?
If it came to an appeal, she said, Musk could point to Tesla’s valuation growth to argue the compensation package was just, regardless of the neutrality of the board. But Musk alluded to the decision in a post on X, writing, “Never incorporate your company in the state of Delaware.” Greg Varallo, an attorney for Tornetta, told The New York Times the shares would be canceled. Bloomberg’s Billionaires Index didn’t immediately remove those options from Musk’s estimated net worth on Tuesday.
Historical Prices for Tesla
This supports the notion that Tesla continues to trade at a significant premium at a time when the growth story is being undermined by various internal and external factors. In addition to the revenue revisions, we also saw dozens of downward revisions for Tesla’s earnings that contributed to the depreciation of the company’s shares in recent days. “Tesla reported preliminary third-quarter deliveries of 343,830, which is an all-time high. Reuters reported Tesla aims to produce around 495,000 vehicles in the fourth quarter. This would put Tesla at a little over 1.42 million deliveries for the year, which is below our previous forecast of 1.49 million.
What happened at Tesla AI Day?
Parkev Tatevosian has no position in any of the stocks mentioned. On the date of publication, Thomas Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Fisker’s cash will likely run out before it can reach a meaningful scale.
Since there’s a lack of major growth catalysts for this year, I wouldn’t expect an improvement in the sentiment anytime soon. As such, it’s no surprise that the company’s shares have been depreciating in the last half a year and the selloff intensified after the release of the latest earnings results. The divergence in the performance of Tesla’s stock against the broader market also shows that the market still views the company primarily as a car business and not as a next-generation disruptor of different industries. It’s important to understand that the delivery target for 2023 was reached primarily by Tesla’s aggressive price cuts for its vehicles, which has negatively affected the company’s bottom-line performance. If we look closely at Tesla’s latest report, we’ll see that as a result of the reduced average selling price for its vehicles, the company’s margins have greatly suffered. In FY23, Tesla’s gross margin, operating margin, and adjusted EBITDA margin were only 18.2%, 9.2%, and 17.2%, respectively.
Answering this question will be the final key catalyst I’m watching for Tesla in 2022. One view of this chart is that Tesla is still growing in absolute terms and is dominating the market. The following chart is really a Rorschach test for Tesla investors.
Then Elon Musk shared a plan on Twitter about how he would handle the war in Ukraine, and many were skeptical of his solution. Then to top everything off, Elon Musk announced again https://bigbostrade.com/ that he was indeed purchasing Twitter after all. Cynthia Augello, an employment lawyer in New York, also said the parties could try to negotiate a package before a formal appeal.
The recent dip in Tesla stock is concerning because some people fear that the share price could continue to tumble. The next earnings report is scheduled for October 19, 2022, which will break down how the company performed in the third quarter. For now, we have to stay tuned as the show continues with Tesla and Elon Musk. What’s more, is that the lower top line growth expectations for 2024 couldn’t have come at a worse time for Tesla given the current state of the globe and the EV market in particular. My discounted cash flow, or DCF, model from last year, which assumed a top line growth above 20% in FY24, also gave the company a fair value in the range of ~$130 per share.
On the other hand, Tesla has been extremely reliant on undisrupted globalization to scale its production and expand its footprint across the globe. Now, as globalization untangles while Sino-American relations hit new historical lows, it becomes much harder for Tesla to navigate in the current environment. Looking forward, the algorithm-based forecasting service estimated the stock to move towards the $361.82 mark by the end of 2023 and $470.99 by the end of 2024. According to Tesla stock forecast 2022 from WalletInvestor, as of 20 October, TSLA could end the year at $256.07.
Fisker also remains unable to raise fresh capital at reasonable valuations. If the firm released its remaining 553 million authorized Class A shares into the market, the $440 million raised would dilute existing Class A shareholders by two-thirds. Anti-dilutive adjustments to the firm’s convertible debt could worsen that figure. Digging into the numbers, Tesla’s revenue jumped from $16.8 billion to $19.9 billion, or 18%, in its first quarter of 2023 compared to its first quarter of 2022.