2024 is definitely a disappointing year for Tesla and its shareholders! It is undoubtedly the worst performing stock among the 7 BIG magnificent. For the past few years, Tesla has become one of the most talked about companies in the world. From its electric vehicles to its battery technology, it's no surprise that many investors are interested in Tesla stock. But with so much hype surrounding the company, is now a good time to buy Tesla stock? Let's look in this article on what would affect Tesla's share price.
Tesla
Tesla starts to face fierce competition from Chinese EV makers especially BYD. BYD is one of the leading electric car manufacturers in China and is a major competitor for Tesla. The company offers several models, including the Qin, the Tang and the Song. All of these cars have impressive range numbers and powerful battery packs, making them viable options for those looking for an alternative to Tesla's vehicles.
Next, since Elon Musk took over, Twitter has seen a surge in usage and popularity. Unfortunately, the increased presence of high profile figures on Twitter has also had some negative effects on Tesla. Many of Elon Musk's posts have been criticized for going against company policy or being unprofessional. This has caused reputational damage to the company.
Not to forget, Tesla is heavily reliant on government subsidies and incentives, which could be reduced or withdrawn in the future.
Tesla
Another risk is Tesla's sales are highly dependent on the continued success of its flagship Model S sedan, which could face increased competition from other luxury automakers.
As we know, the company is betting heavily on FSD which will be the birth of the autonomous vehicle evolution and is designed to automate Tesla vehicles so they can operate without a driver behind the wheel. Tesla's FSD is at Level 3 automation (conditional driving automation), which means a driver should be engaged at all time. However, once FSD can navigate autonomously, it will not only boost Tesla's profit margins, it will be a profit center of recurring revenues for $Tesla Motors(TSLA)$
Tesla
Without doubt, the share price of Tesla remains weak for the moment, but I believe the company is preparing and in shape of rebound, probably in the year of 2025. The incoming 1-2 quarters' earnings will be very critical as well! 150 USD might be a bottom for Tesla if the incoming earnings call is positive, else it might plunge towards another major support at 120 USD.
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Tesla Stock Analysis
Business and Industry Overview
Tesla Motors (TSLA) is a leading electric vehicle (EV) manufacturer known for its innovative technology and sustainable transportation solutions. The company operates in the automotive industry and is focused on producing electric cars, energy storage products, and renewable energy generation systems. Tesla has gained significant attention and popularity in recent years due to its groundbreaking EV models, such as the Model S, Model 3, Model X, and Model Y.
The EV industry is experiencing rapid growth globally, driven by increasing environmental concerns, government incentives, and advancements in battery technology. As the world transitions towards sustainable transportation, Tesla is well-positioned to capitalize on this trend with its cutting-edge EV technology and extensive charging infrastructure network.
Earnings Analysis
According to the latest earnings forecast, Tesla is expected to show strong growth in the coming years. In 2024, the forecasted earnings per share (EPS) is $2.67, with a gross income of $102.85 billion and an estimated EBIT of $8.82 billion. Looking ahead, the forecasted EPS for 2025 is $3.62, with a gross income of $120.03 billion and an estimated EBIT of $12.79 billion. In 2026, the forecasted EPS is $4.62, with a gross income of $143.90 billion and an estimated EBIT of $17.37 billion.
Trend Analysis
The current stock price of Tesla is $155.45 (USD) as of April 18, 2024. The support price on April 16, 2024, was $153.75 (USD), indicating a potential level of support for the stock. The resistance price on the same date was $183.75 (USD), representing a level of resistance that the stock may face in its upward movement. The average cost on April 16, 2024, was $187.38 (USD).
Valuation Analysis
Analysts have provided target price estimates for Tesla stock. The mean target price is $184.79 (USD), with a low estimate of $22.86 (USD) and a high estimate of $320.00 (USD). It's important to note that these target prices are based on analysts' opinions and forecasts.
The analyst recommendation for Tesla stock is as follows: 5 recommend, 12 buy, 22 hold, 7 underperform, and 4 sell. This indicates a mixed sentiment among analysts regarding the stock.
Capital Flow Analysis
The capital flow data for Tesla shows fluctuations in the inflow and outflow of capital over the past five days. On April 10, 2024, there was a significant inflow of 58,062.03 thousand units (K). On April 11, 2024, the inflow decreased to 35,348.54 thousand units (K). On April 12, 2024, there was an inflow of 51,079.17 thousand units (K). However, on April 15, 2024, there was an outflow of -19,084.11 thousand units (K). On April 16, 2024, there was a significant inflow of 148,054.15 thousand units (K).
Conclusion
Tesla's stock performance in 2024 has been weak, but the company is expected to rebound in the future. The upcoming earnings reports will be critical in determining the stock's direction. If the earnings call is positive, the stock may find support around $150 (USD). However, if the earnings call is negative, the stock could potentially decline towards a major support level at $120 (USD).
It's important to note that investing in the stock market carries inherent risks, and stock prices can fluctuate. The analysis provided here should not be considered as investment advice. Investors should conduct their own research and analysis before making any investment decisions.
Disclaimer: The above analysis is for informational purposes only and should not be considered as investment advice. The analysis is based on available data and market trends, which are subject to change. Investing in stocks involves risks, and investors should carefully consider their investment objectives and risk tolerance before making any investment decisions.
Yeah I’m going out to get some sleep and then go home
The difference between Mercedes-Benz’s “Level 3” autonomous driving system and Tesla’s FSD. What Mercedes-Benz says about reaching L3 autonomous driving restrictions includes the following restrictions:
1. Road restrictions: Only available on 0.2% of roads, and only on highways.
2. Speed limit: The vehicle speed must be below 40 mph to be used.
3. Temperature restrictions: Can only be used in temperatures above 40 degrees Fahrenheit.
4. Vehicle restrictions: When in use, there must be no vehicles around.
5. Weather restrictions: The weather must be good, no rain.
6. Time restrictions: Can only be used during the day.
7. Construction area restrictions: Cannot be used in construction areas.
Tesla’s FSD fully autonomous driving does not limit these, and the V12 can be used on almost any road in the United States 🙂
So the Level 3 is very "conditional" [Happy]