Analysts break down Tesla stock troubles amid rough 2024
How are Tesla's (TSLA) corporate directors responding to this month's massive delivery miss, a rash of layoffs, reports of an end to a lower-priced family sedan, and a sinking stock price? They are urging shareholders to make sure CEO Elon Musk gets a hefty pay package.
In a proxy statement filed Wednesday, Tesla's board of directors made it clear that Musk is here to stay, even as calls grow louder from some investors and analysts for a leadership change. But Tesla's rough week extends beyond questions of Musk's stewardship and the board's accountability. Tesla's stock is priced for a mass-market, autonomous future, but the company is mired by a host of troubles standing in the way of that story.
"Tesla, as a stock, will suffer greatly with or without Musk," said David Trainer, CEO of New Constructs, an investment research firm based in Nashville that doesn't own shares of the automaker. "Musk's chief value-add for Tesla over the last several years has been in distracting investors from the truth about the weakness in the business that has finally and unmitigatedly emerged."
Tesla shares fell more than 3.5% Thursday and have slid more than 35% this year. And unlike its "Magnificent Seven" peers, which Wall Street has rewarded for announcing layoffs, Tesla shares tumbled further following news of a more than 10% reduction in global headcount.
Often layoff decisions trigger a bounce in the stock price, as it can signal greater cost-efficiency or a new strategic direction. But the Tesla layoffs prompted the opposite effect, signaling dysfunction and lowered expectations.
Tesla and its market valuation have come under increasing scrutiny even before its recent bout of challenges.
Earlier this year, Musk threatened to develop advanced AI and robotics technology outside of Tesla if he was not given greater influence over the company. His remarks raised questions about the long-term value of the company and rekindled criticism over Musk's divided attention. Alongside leading Tesla, he serves as the CEO of SpaceX, the owner of X, and the founder of xAI, an artificial intelligence company.
Even putting Musk's conflicts aside, the company's early success as an all-electric pioneer, bending the entire auto industry toward its vision, is now working against it.
Tesla holds a sizable lead in market share and in the value of the company. Its market cap stood just under $500 billion as of Thursday.
But competition is everywhere. And while shaking up stodgy Detroit fueled Tesla's rise, legacy car companies are churning out incremental innovations.
"It's first-mover advantage has long since eroded," said Trainer. "The competition has caught up and is surpassing Tesla at the high and low end of the market."
Even Tesla's most vocal backers are casting doubt.
"In our view the clock has struck midnight for Musk to now lay out the growth strategy, give realistic delivery and margin goal posts, discuss why significant layoffs now, and most importantly give a clear outlook to the Street around Model 2," Wedbush analyst Dan Ives wrote in a note Wednesday.
Tesla's long-anticipated entry-level vehicle, sometimes referred to as the Model 2, had been a crucial component of a grand vision to bring electric vehicles to the masses.
But Reuters, which first reported on the scrapped plans for a sub-$30,000 EV, said Tesla would instead focus on a self-driving robotaxi. Musk disputed the report but has since said that Tesla will debut its robotaxi on Aug. 8.
The recent shakeups, including the departure of longtime Tesla exec Drew Baglino, point to a riskier gamble for the company, analysts say.
Instead of mass-producing an affordable consumer EV, an updated blueprint would rely on building autonomous fleets and clearing the technological and regulatory barriers for fully self-driving vehicles. Tesla bulls contend that was part of the market appeal all along. And boosters point to the company's enormous stockpile of data as a crucial tool to commercialize the next era of driving.
But the company's autonomous ambitions coming closer to fruition weren't enough to calm worries from longtime backers. "Without a low cost model to sell, there isn’t one financial model that any analyst has that works for Tesla," Ross Gerber, the CEO of Gerber Kawasaki Wealth & Investment Management, said on X. "They must develop a low cost Tesla."
Musk might have other plans. In the weeks leading up to Tesla's June shareholder meeting, company leaders will be under pressure to detail what the automaker's next phase will look like. A pivot might take shape and could even succeed. But the question will be if an altered vision can still sustain a towering stock price and a growth story to justify it.
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I don't have much confident in Tesla stock for now, I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
@GaryNicka
Ай бұрын
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Ай бұрын
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Ай бұрын
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@MickyGlover
Ай бұрын
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@kurtKking
Ай бұрын
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SPY , IVV hitting the scene so far. These ETF's doing just fine. Despite fluctuations in capital market ,certain amount of ETF's do well.
@jacobwalter6728
Ай бұрын
Actually not even close, the fundamentals have changed drastically. Personally I put down 1.3m$ on few ETFs, still diversifying. It was this time last year I made my first million with a liquid 200k. Invested it in a trader here in CA, I get weekly pay out which I invest back on long term ETF's. Tesla will be a huge buy for me when the market bottoms.
@user-pi6mk8lb2m
Ай бұрын
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@jacobwalter6728
Ай бұрын
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@ds.sabujsarder4234
Ай бұрын
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@user-pi6mk8lb2m
Ай бұрын
Searched the web and saw her profile and accreditations , some one with great experience I must say, thanks!
Elon Musk said a couple years ago that nearly all of Teslas value was in autonomy...this is not a change of plan, its analysts waking up to reality
Tesla Cybertruck: Gone in 6 months from Total Eclipse Of My Heart to Total Recall. Current production rate (before stopping it) means, that the last Cybertrucks from Tesla's 2023 order book are delivered in June 2062.
@ezragonzalez8936
2 ай бұрын
FSD not to mention robotaxi will be the end for Tesla huge massive liability a handful of Tesla accidents in FSD and its game over!
@mikapeltokorpi7671
2 ай бұрын
@@ezragonzalez8936 I just commented on another channel that Musk touting biweekly FSD update schedule from this point forward and laying off FSD test engineers in Austin will end to exactly that. Especially after upgrading to Level 3 or higher they can't do it. Or they can, but then the risk and is totally on company. And because Tesla stopped paying for D&O Liability Insurance in 2018, its Executives and Board members may be held personally liable, too.
When Ive said just wait for Iphone 24. I spit with laughter 😂😂😂 cause this is what all Tesla investors all think
Elon is distracted with X. That's his focus.
@INXIETE
Ай бұрын
lol u do realise, companies are built by teams and not one person right?
@goldeneastgun
20 күн бұрын
@@INXIETE Yes, but good leadership is still required.
If the pedal is falling of after a few weeks. Imagine the building quality of the rest of the car.
@itisim
2 ай бұрын
😂😂😂😂
EV competition in China is ramping up. Tesla isn’t the only game in town, or China, anymore. It will continue to eat into their sales.
@itisim
2 ай бұрын
Once rivian pull through in America it will hit tesla too
@kaptain1477
2 ай бұрын
No one is gonna buy Chinese cars full of spyware and questionable batteries
@mikafiltenborg7572
2 ай бұрын
Tesla's competition is coming All over them self 😂😂😂
@mikafiltenborg7572
2 ай бұрын
Tesla's competition is coming All over them self 😂
@mikafiltenborg7572
2 ай бұрын
Tesla's competition is coming All over them self
Former hard core Tesla bull like Ross Gerber is sounding like what Musk would call "shorty short!". Musk cult is melting down. LOL
@Rob-no6sk
Ай бұрын
he had 2000 shares i wouldnt call him a bull hes just a dude with bad TA
Good overview.
Remember when Homer Simpson was let design a car for Uncle Herb’s car company?: Cyber Truck Remember when a over the top salesman sold a Monorail to the Simpsons town of Springfield?: elon musk
The major hurdle of robotaxi is not just the regulatory requirements but who is taking the liability when there is an accident. Which insurance company is willing to offer reasonable premium to make robotaxi even profitable.
Maybe the quality is coming with the cheaper models? Sounds Elon-logical.
Kudos to the guy who started selling TSLA in November.
guy seems drunk lol
Thank you for the information!
People think that Tesla is just a car company. That cracks me up.
@theeJordanTaylor
Ай бұрын
It is.
@ElonHusky
Ай бұрын
Ya it's not it's Elons ego company
@bobbybishop5662
Ай бұрын
Tesla will remain a car company until the revenue from it's other products increases to match or at least gets closer to matching revenue from the auto side. Sorry fanboys , that's how it works.
Dan Ives is one of the best tesla commentators!
All this bad news must be short term, otherwise why would the Tesla board asked shareholders to approve a $50 billion dollar compensation package for Elon?
If Tesla sold just a 1000 cyber truck, how in the world is 4000?
@fredrik3685
2 ай бұрын
Maybe they have 3000 produced that they have no buyers for.
@roblovegreen
2 ай бұрын
@@fredrik3685 Tesla definitely has buyers for the cyber truck. Many of them are likely in the process of being delivered.
@dong9514
2 ай бұрын
Maybe gave some away for promotion?
@ezragonzalez8936
2 ай бұрын
FSD not to mention robotaxi will be the end for Tesla huge massive liability a handful of Tesla accidents in FSD and its game over!
CyberTruck seems to be a complete dud. Tesla could propably have used the x-model as base to make a truck, but went for an abomination. And if there is no model2 either…
Mr. Musk must display his inner Steve Jobs. If he doesn’t roadmap short & mid term plans, stakeholders will head for the exits.
Reason one. Elmo and twitter
Tesla should merge with rivian
@R3tr0v1ru5
Ай бұрын
Buy*
@ihenrynl
Ай бұрын
aint gonna happen, rivian = ford = competitor, more likely they will snap lyft or uber, since most those drivers are tesla owners and makes sense with the whole robotaxi story.
@itisim
Ай бұрын
@@ihenrynl you know evtol is going to disrupt the taxi market
@mikafiltenborg7572
Ай бұрын
RIVIAN Who? 😂😂
@itisim
Ай бұрын
@@mikafiltenborg7572 the competition
Don't be negative. Tesla is soon to become the worlds biggest seller of Giga Die Casting Machines...
@bobbybishop5662
Ай бұрын
Tesla doesn't make die casting presses ffs.
@Engineersoldinterstingstuff
Ай бұрын
@@bobbybishop5662 Nope - they have bought a lot of them - if you can't keep these machines running constantly you better sell they do not produce good quality running intermittent. The cost of these machines are astronomical - unless they are utiluzed 24/7 they are disasters.
@Chris-8.9
Ай бұрын
@@Engineersoldinterstingstuff , why do they have to run continuously?
@Engineersoldinterstingstuff
Ай бұрын
@@Chris-8.9 HPDC are very sensitive to temperature fluctuations , die temperature and melt temperature needs to be very strictly controlled or it will severely impact casting quality. Also the thermal fatigue wear of the dies are sensitive to temperature variations. At start the dies are cold and only after a number of shoots the process parameters are stabilized. Not mentioned the capital cost of the investment in machines like these..
@Chris-8.9
Ай бұрын
@@Engineersoldinterstingstuff Thanks for the info 👍🏼
“experts"
aged well per usual , just trash reporting
Ross is such a wienie baby. His fund is so under water. Why is he even being asked on to speak?
Robotaxi will fail Tesla too. Think about all the people who will file lawsuits!!!!!!!!!!! Just think about it.... no good
@mikafiltenborg7572
Ай бұрын
Please go Short TSLA 😂
Why all the criticism? Nightmare on Elm street ? I think 1/2 of the people know why, lol.
56billion dollar denied to Elon! I would never be in a stock where the CEO attempted to take shareholders money!
Going to $50.
Elon never said Tesla was not going to continue with their plan to have the 25k model 2 out in late 2025. He’s just moving forward more aggressively now on Robotaxi. This is likely because of such incredible improvements in the latest version of FSD.
I see so many different opinions i really cannot tell who is correct and who is not. I wish yahoo can tell us the success rate or ranking of these commentators. I do not see any validity of people like Gordon Johnson!
FSD not to mention robotaxi will be the end for Tesla huge massive liability a handful of Tesla accidents in FSD and its game over!
I was a second day CT reservation holder and a tesla bull since 2016. When Elon increased the price of the CT and reduced it's performance, that was the last straw. Very little of what Elon says is the truth, just his wild imagination. In December I sold 1/2 of my tesla stock and bought puts for the rest of my stock which has stopped my losses. Maybe tesla will find it's way but I am not risking a big chunk of my portfolio. The purchase of twitter was Elon's biggest mistake.
It was in a similar position in the first quarter of 2023, this is nothing new.
@joka5345
2 ай бұрын
We want actually results this time. Not fake promises
@sonayiac
2 ай бұрын
Actually not even close, the fundamentals have changed drastically
@goldeneastgun
2 ай бұрын
Pie in the sky. Tesla benefited from the pandemic money printing. Now it's false valuation is catching up. Failed at hyper loop. Failed at solar roof. Failing at Twitter. Failing at Space X... now failing at Tesla. How much more evidence do investors need that Elon is a richy rich cartoon character.
@larriehowatz-oo5cr
Ай бұрын
@@joka5345 you broke man.
@nathansteele4358
21 күн бұрын
It’s completely different now, how is it similar to?
Rivian will catch up
@mikafiltenborg7572
2 ай бұрын
... In year 2040😂😂
@itisim
2 ай бұрын
@mikafiltenborg7572 before then. Byd killing tesla in china while snatching ev market share and once rivian do it in America tesla will be a normal stock and car company trading at 50 per share. Tesla robo taxi will be demolished by joby and archer evtol once electric helicopter pop off
@janb7467
Ай бұрын
Joker
How was this guy a "BULL"? with $189 price target?
@carlosgamez6230
2 ай бұрын
Compared to its current price that is bullish lol
@jayan5221
2 ай бұрын
@carlosgamez6230 Wow, what an in depth observation. Good luck following an analyst who ranks 7,383 out of 8,786 Wall Street Analysts. LOL
@carlosgamez6230
2 ай бұрын
@@jayan5221 twas a joke bro wasn’t that deep
@bobbybishop5662
Ай бұрын
Young investors are really clueless on how to make money in the market. All the smart investors got out at the peak in Nov 21. The rest are hoping for sloppy seconds . It's sad but funny at the same time.
@jayan5221
Ай бұрын
@bobbybishop5662 What's really sad is people who supposedly got out 3 years ago still leaving comments on stocks they don't even own.
If you listen to these guys, TSLA would have been bankrupt 7 years ago. Instead, if you held TSLA when the time was bad, TSLA has made you 10x returns. If time is bad for TSLA, it is much worse for other EV makers. TSLA will be the last man standing as a EV maker. TSLA is a much higher tech company than MSFT and AAPL, comparing what these companies do. Mark my words, TSLA WILL BE BIGGER THAN MSFT OR AAPL 5 or 7 YEARS FROM NOW.
@Eastbayrob
Ай бұрын
I honestly dont think so.
@gerritjanboeve
Ай бұрын
Not a chance.
😂Tesla model Y was the Best selling carmodel on planet Earth in year 2023 🏆🏆🏆🏆🏆
@bobbybishop5662
Ай бұрын
Funny how the stock doesn't reflect that. It means very little in the long run. Defending the worst performer on the S&P is something only a brain washed fanboy would do.
@bobbybishop5662
Ай бұрын
Funny how the stock doesn't reflect that. It means very little to in the long run. Fanboys just can't get it.
Bs talk
CYBERTRUCK will sink Tesla. It's expensive but feels cheap and unfinished; it's impractical due to limited range when carrying a load; the stainless steel finish rusts and requires more care than a Ferrari; it totally misses the demographic of people who can actually afford a $100,000 pickup. It's an ego project, but will be Elon's Edsel.
@mikafiltenborg7572
Ай бұрын
😂😂😂😂2,300,000 pre-order for Tesla CYBERTRUCK
@raywest3834
Ай бұрын
@@mikafiltenborg7572 2.3 million PAID pre-orders for the Warthog? I doubt it. Also, people wiggle out of pre-orders once they read the reviews, or don't want to wait for a 2035 delivery. Then there's the coming recession due to Bidenomics; folks walk away from deposits once they lose their jobs
Elon tweeted some racist tweets about Black people 3 days ago, I'm done with Tesla at this point. He's a clown