Is Tesla an undervalued stock? (2024)

Is Tesla an undervalued stock?

At current prices, we view Tesla as undervalued, with the stock trading in 4-star territory. We had four key takeaways. First, the affordable vehicle is still on track for first deliveries by the end of 2025. Tesla's affordable vehicles are a catalyst for shares.

Is Tesla still overvalued?

Contributor. Despite Tesla's TSLA -3.4% stock having lost more than 60% of its value since November 2021, recent analyst reports from JPMorgan indicate that the stock would have to drop by an additional 35% from its current level to reach fundamental value.

Is Tesla a buy or sell right now?

Gianarikas is relatively bullish on Tesla shares, rating them Buy with a price target of $234 a share, though he expects numbers will look weak. Wall Street is projecting operating profit margins of just under 7%, down from about 11% in the first quarter of 2023 and down from about 19% in the first quarter of 2022.

Why is Tesla stock rated so poorly?

Overall, Tesla's stock is down 40% so far this year, due in large part to concerns over the company's slumping sales as well as increased competition from Chinese EV makers. In a post on X Sunday, Tesla CEO Elon Musk said, “Tesla prices must change frequently in order to match production with demand.”

Is Tesla stock likely to recover?

“Tesla first quarter 2024 [is] likely the bottom,” wrote New Street Research analyst Pierre Ferragu in a Thursday report. He expects first-quarter deliveries to come in around 420,000 units, but also expects delivery growth and a recovery in profit margins later in 2024. Investors hope that's the case.

Does Tesla stock have potential?

TSLA Stock Forecast FAQ

Tesla has 17.66% upside potential, based on the analysts' average price target. Is TSLA a Buy, Sell or Hold? Tesla has a conensus rating of Hold which is based on 8 buy ratings, 19 hold ratings and 7 sell ratings.

What is Tesla stock prediction for 2024?

Tesla (TSLA) stock is angling lower in 2024, falling around 30% as analysts project 2024 vehicle deliveries could undercut last year's total with profit forecasts continuing to fall ahead of first-quarter earnings.

How well does Tesla sell?

General Motors just recently crossed that threshold while other electric vehicle manufacturers are way behind. Tesla is the best-selling electric vehicle manufacturer in the United States. In 2022, Tesla sold a total of 354,822 vehicles in the US, up from 234,000 vehicles in 2021.

What is expected for Tesla earnings?

Earnings per share: 45 cents adjusted vs. 51 cents expected. Revenue: $21.30 billion vs. $22.15 billion expected.

Is Tesla stock at risk?

This year's slide in the stock has raised the risk that any disappointment in Tuesday's earnings report or Musk's conference call could snowball, according to technical analysts who analyze moves in share prices to predict their future path. To them, the drop below $150 has already breached a key support level.

Is Tesla stock high risk?

The company has an average financial risk score of 2.61, driven by its healthy liquidity and cash flow ratios.

How much will Tesla stock be worth in 2025?

Projections on Tesla's stock peak diverge. An upbeat view from TipRanks analysts hints at a $229 average price target, while Long Forecast foresees an increase to around $332 by the end of 2025.

Is Tesla a safe long term stock?

Tesla Shares: A Fair Value Estimate

With its 3-star rating, we believe Tesla's shares are fairly valued compared to our long-term fair value estimate. In 2024, we forecast Tesla will see a far slower growth rate, with deliveries increasing just 10% to a little under 2 million, from a little over 1.8 million in 2023.

Is Tesla share worth buying?

From 2017 and 2022, Tesla's revenue increased at a compound annual growth rate of 47%. This type of monster growth helps explain why the stock was a massive winner for investors, trading more like a tech company and jumping 500% from the end of 2017 to the end of 2022.

Is Tesla stock tanking?

Tesla Stock Falls After Analyst Downgrade

Thursday's performance marked the stock's fifth consecutive drop; Tesla stock has dipped about 15% so far this month and 40% in 2024. Shares finished with a lower market value than those of Walmart, whose market capitalization is about $480 billion.

Who is the largest individual shareholder of Tesla?

Elon Musk owns the most shares of Tesla (TSLA).

Is Tesla the best performing stock?

Tesla Inc.'s weak stock performance so far this year stands out — so much so that the name is the second-worst performer in the S&P 500 for 2024 to date. Shares of Tesla are off 43% so far this year.

Why is Tesla stock tanking?

The decline reflects an array of problems, including cooling sales and growing competition from Chinese car makers. Tesla has cut prices in recent days, including in the U.S. and China. Tesla will report earnings Tuesday. Analysts expect sales will fall 4.8% from a year ago to about $22.2 billion.

Where will Tesla be in 5 years?

Wall Street expects Tesla earnings per share of just $2.96 a share in 2024, according to FactSet. That would be a around a 5% decline vs. last year's $3.12. That was a 23% decline vs. 2022. Analyst project a solid increase in 2025 to $4.13 a share.

How high will Tesla stock go in 2030?

He forecasts Tesla stock to gain about 550% to hit $1,200 a share by 2030, and for SpaceX to triple in valuation over the same period, according to a recent interview conducted by Bloomberg. Baron runs the Baron Focused Growth Fund, which counted Tesla and SpaceX as its largest holdings as of December 31, 2023.

What is the price forecast for Tesla in 5 years?

According to the estimates cited above, Tesla stock could be worth between $564 and $2,326.138 a share in the next five years, implying potential over 1,000% gains based on the last closing price of $181.41, though this seems an ambitious target.

Will Tesla ever make a profit?

Net income attributable to Tesla's common stockholders was nearly 15 billion U.S. dollars, while net loss related to noncontrolling interests amounted to 23 million U.S. dollars in 2023. This was the fourth year the company turned a full-year profit, after reaching that goal in 2020.

Will Tesla become profitable?

With Tesla already slashing prices twice this year and expectations now muted for interest rates to fall soon, the company's return to profit growth seems in doubt. The average Wall Street analyst expects its profit to increase from $3.15, which it has not yet reported, to $3.74, or an increase of 19%.

Has Tesla ever profited?

Tesla ended Q4 2023 with a net income of $7.9 billion and the full year with $15 billion in profits.

Why Tesla shares decline?

Tesla shares fell on Tuesday after the company reported a drop in vehicle deliveries in the first quarter, the first annual decline since 2020, when the global pandemic disrupted production.

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