TSLA - Tesla: Buy The Dip? Here's What You Need To Know (Rating Downgrade)
2024-02-13 11:40:45 ET
Summary
- Tesla, Inc.'s Model Y became the global best-selling car in 2023, silencing doubts about EV desirability.
- Yet, the company is experiencing sluggish top-line growth, with Q4 showing a mere 3% YoY increase and contracting profit margins.
- Uncertain EV demand, ongoing price wars, and the lack of 2024 guidance on profit margins and growth pressure Tesla's stock.
- Trading at over 60x its earnings and facing a year of expected flat EPS growth in 2024, I'm downgrading Tesla's stock as the market currently presents better opportunities.
After a stellar 2023 where Tesla, Inc. ( TSLA ) stock soared, doubling in value at one point before settling 53% higher by year's end, 2024 has brought a harsh reality check. The stock has plunged over 24%, fueled by disappointing Q4 earnings and revenue that fell short of expectations.
This performance has shaken investors, causing them to question Tesla's continued presence in the "Magnificent 7" group of high-flying tech stocks....
Tesla: Buy The Dip? Here's What You Need To Know (Rating Downgrade)