GM - Tesla: Labor Troubles Worsen But Some Positives Are Visible

2024-02-21 12:44:47 ET

Summary

• Tesla, Inc.'s share price decline YTD is no surprise given its worsening labor troubles, increased competition and stretched market multiples.
• However, its continued popularity, especially in the Nordic countries, improved operating margin in Q4 2023 and narrowing P/E gap with peers work in its favor.
• Looking ahead, its story can go either way. Risks of wider industrial action exist if present challenges stay. And sustained improvement in margins could be key in reviving investor faith.

Since I wrote about the electric vehicle [EV] giant Tesla, Inc. (TSLA) last November, its share price is down by ~19% and even more year-to-date [YTD] (see chart below). No surprises there, given that a slew of factors were working against during at that time....

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