Tesla: Buy The Dip? Here’s What You Need To Know (Rating Downgrade)

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.

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FREDERIC J. BROWN/AFP via Getty Images

After a stellar 2023 where Tesla, Inc. (NASDAQ: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


Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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