Tesla’s – In a surprising turn of events, Tesla’s stock has plummeted by 25% in 2024, prompting investors to reevaluate their positions and consider taking their profits. The electric car giant, which experienced a remarkable doubling of its stock in 2023, now faces challenges that are casting doubt on its future growth and performance.
Tesla’s recent earnings report, released on January 25, fell short of expectations, leading to a 10% drop in its stock value. Analysts have subsequently revised their price targets, signaling a growing concern among investors. One of the primary reasons behind this decline is Tesla’s weak customer value proposition and CEO Elon Musk’s shifting focus towards artificial intelligence and robotics.
The financial figures presented in Tesla’s fourth-quarter report for 2023 paint a less-than-rosy picture. Despite a 3% increase in Q4 revenue to $25.17 billion compared to the same period in 2023, the company fell short of LSEG expectations by about $500 million. The Q4 operating margin took a hit, dropping to 8.2%, approximately half of the figure reported for the same period in 2023. While the Q4 net income reached $7.9 billion, more than doubling the amount from Q4 2023, a significant portion of this increase was attributed to a $5.9 billion “one-time noncash tax benefit.”
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Looking ahead to 2024, Tesla’s projections for electric vehicle volume growth indicate a potential slowdown. The absence of a specific production target for the year is a departure from previous practices, and analysts predict only a 20% increase in deliveries compared to the 38% rise observed in 2023.
