Tesla’s stock journey has been anything but ordinary. Investors have faced a mix of thrilling highs and frustrating lows. While TSLA is currently trading slightly above where it stood a year ago, this doesn’t fully capture the stock’s turbulent path.
Price Fluctuations: A Year in Review
Starting from $251.60 in October 2023, Tesla’s stock took a nosedive, dropping 44% to $142.05 by April 2024 after the company reported disappointing first-quarter results.
However, the narrative shifted when Tesla announced stronger-than-expected delivery numbers in July, pushing the stock back up to $263.26.
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Yet, yet another disappointing second-quarter report sent shares tumbling again, resulting in a current price of $258.02 as of October 1, 2024.
Over the past year, TSLA stock has been a rollercoaster, gaining 120% in 2023, but it has fluctuated between $138.80 and $271 in just 52 weeks.
Despite this volatility, it remains significantly below its peak of $409.97, reached on November 4, 2021. Remarkably, Tesla’s stock has soared by over 1,500% in the last five years.
What’s Influencing Tesla’s Stock?
Recent Production Numbers
In early October 2024, Tesla reported producing around 470,000 vehicles and delivering about 463,000 in the third quarter.
Analysts were disappointed, expecting higher delivery numbers, which resulted in a 6% drop in share price shortly after. To meet last year’s delivery totals, Tesla will need to deliver over 500,000 vehicles in the final quarter.
European Tariff Proposals
The European Commission is considering imposing a 19% tariff on Tesla vehicles imported from China.
Additionally, cars made in China could incur another 9% charge, affecting Tesla’s profitability in the European market.
Financial Outcomes
In July 2024, Tesla released its second-quarter earnings, which were below expectations. The company posted a net income of $1.48 billion, down 45% from the previous year.
Factors like price cuts, reduced demand, and increased costs from AI projects played a significant role in this decline.
Upcoming Developments
CEO Elon Musk announced a delay in the much-anticipated unveiling of Tesla’s self-driving robotaxis, with the prototype now set to debut on October 10, 2024.
The company also confirmed plans for new, more affordable models set to enter production in the first half of 2025.
Current Valuation Assessment
Seth Goldstein from Morningstar believes that Tesla’s stock may be slightly overvalued, estimating a fair value of around $200 per share.
He expects that Tesla will achieve strong growth by 2026, driven by the introduction of more affordable vehicles.
Varied Ratings
As of early October 2024, Tesla stock holds a “Hold” rating from many analysts. Among 38 Wall Street analysts, opinions vary: 17 recommend holding, 13 suggest buying, and 8 advocate selling.
The average price target predicts a potential decline of about 18.5% to $209.90 over the next year, but views on the stock’s future differ widely.
Conclusion
Tesla’s stock remains a hot topic among investors, reflecting the dynamic nature of the electric vehicle market. With fluctuating production figures and ongoing regulatory challenges, investors need to stay informed and consider market conditions when making decisions.
While some analysts see potential for growth, others advise caution amid the company’s recent struggles.
People May Ask
1. Is investing in Tesla stock advisable?
Current analyst opinions are mixed. Many suggest a “Hold,” so it’s crucial to assess your investment goals and market conditions.
2. What factors impact Tesla’s stock price?
Key influences include production and delivery numbers, quarterly financial results, and regulatory developments.
3. How has Tesla performed recently?
Tesla’s stock has experienced significant ups and downs, with remarkable growth over the past five years but a drop from its all-time high.
4. What should investors monitor?
Watch for updates on production targets, earnings reports, and new vehicle launches, as well as any changes in regulations that may affect Tesla’s operations.
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