Tesla: Growing Challenges Amid Disappointing Earnings


  • Sales growth of electric vehicles is slowing down significantly, with EV stock prices plummeting and revenue declines for certain companies.
  • Tesla, once the undisputed champion, misses earnings significantly amid challenges such as tough competition, lower demand, falling margins, and high valuation.
  • Tesla seems to be overvalued, and its stock is prone to a further decline in the current environment.
  • The sentiment around Tesla after its Q1 2024 earnings remains dull. The revenue and EPS miss reaffirm the bearish sentiment.

A manager is holding a magnifying glass over a money bag, a car and a down arrow. Falling cost of maintenance and repairs of the machine. Reduced duty on electric cars. Tax exemption. Low prices

Andrii Yalanskyi/iStock via Getty Images

Tesla Is Struggling

The hype surrounding electric vehicles (EVs) is cooling down. While EV sales soared in 2021 and 2022, there are multiple examples of that growth slowing significantly. Some analysts point to a substantial decline in EV stock prices, with

2020 2021 2022 2023
Revenue Growth 28 % 71 % 51 % 19 %
Revenue per Share Growth 22 % 61 % 43 % 17 %

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