Tesla Stock Falls Nearly 3%. Why Shares Are Limping Into Year End

Dow Jones2024-12-27

Tesla stock slid on Friday ahead of the auto maker's fourth-quarter delivery announcement.

Shares of the electric vehicle-maker fell 2.92% to $440.88, extending losses from a day prior, when the stock fell 1.8%.

One reason might be Tesla is set to report fourth-quarter deliveries next week, with analysts anticipating around 510,000 units, but that's slightly shy of the company's 515,000 target. The auto maker delivered 462,890 vehicles in the third quarter, up 6% from a year prior -- and while this number topped consensus estimates, it triggered a slide in the stock as it failed to beat lofty expectations.

Also on Friday, one of Tesla's battery suppliers unveiled plans for a secondary listing in Hong Kong. Contemporary Amperex Technology is seeking a listing on the main board of the Hong Kong stock exchange, according to documents filed with the Shenzhen Stock Exchange.

While the proposal has earned the approval of CATL's board, the company awaits the blessing of regulators including the China Securities Regulatory Commission. CATL is not just a Tesla partner, but the largest EV battery maker in the world.

The news comes as U.S. auto makers grapple with intense competition in the Chinese EV market. General Motors, for one, has seen a steady decline in sales since 2017 as Chinese companies like BYD and Nio snapped up more market share.

Tesla continues to perform well, with Tesla China reporting 21,900 EVs sold during the first week of December, the highest weekly sales for the fourth quarter of 2024. Shares of the company have gained nearly 83% this year.

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Comments

  • 上高山
    2024-12-27
    上高山
    Money is moving from Tesla to Quantum computing stocks now.
  • Guavaxf30
    2024-12-27
    Guavaxf30
    Nothing being said here is new. But the buying public still chased Tesla to record high. High after high.  Today's relative weak showing is just a sign of rotational play. But if truth be said, there are no fundamentals on hand that can justify the super sky high valuations, even after the correction.
    • Guavaxf30: 
      Has the Tesla collapse finally be happening now? I don’t think so.
      Likely it is market taking money off the table as we head into the new year.
      But the end could be coming soon. Again, be very careful and do not loose focus.
  • a4xrbj1
    2024-12-27
    a4xrbj1
    "Faith in leadership of autonomous driving"? What BS is the WS analyst saying? The leader is Waymo in the US and Baidu in China, both companies do over 100k paid autonomous trips each week. Tesla on the other hand doesn't even have autonomous driving, makes 0 trips. When is this stock pumping by analyst going to stop? How much are they paid by listed companies to write such BS? If and when Tesla launches their autonomous service we can talk. It remains to be seen if their vision only approach is even working. There's a reason everyone like Waymo and Baidu uses additional sensors.
  • Dr Rck
    2024-12-27
    Dr Rck
    Nothing is certain until the result announcement but I think TSLA's future will really depend on it's key growth drivers that are namely FSD and Optimus which have yet to see concrete results at the moment but don't rule out forward P/E that investors are willing to invest sooner than later..
    • Dr Rck: 
      Also to add many forget that TSLA doesn’t just rely on EVs otherwise it should not worth that much a stock but it is a stock that represents the world of the future!
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