The year just keeps getting worse for Tesla. Down more than 30 per cent, it’s in a neck-and-neck race with troubled airline maker Boeing for the unwanted title of the S&P 500′s worst-performing stock in 2024.
Tesla’s woes are piling up. It has slashed prices due to slowing demand amid increased competition. In January it warned growth would be “notably lower”. And earlier this month, a suspected arson attack caused a temporary shutdown of Tesla’s European gigafactory near Berlin.
Tesla is now a “growth company with no growth”, says Wells Fargo, which expects flat sales volumes in 2024 and a decline in 2025.
Contrarian investors might nibble if the bad news were completely priced in, but Tesla isn’t cheap. Although it is the only of the magnificent seven stocks (Microsoft, Apple, Nvidia, Amazon, Alphabet, and Meta) where earnings are expected to decline this year, it is the most expensive of the group, trading on 56 times trailing earnings.
ECB cuts rates but signals a likely pause and hotels giant Dalata considers a billion euro sale
Mortgage holders and household finances - the ECB rate cut is good news. Right?
In an era of rising property prices, the rich in Ireland are only getting richer
Kenmare founder tried to buy listed miner and D4 gem faces demolition
In short, Tesla’s valuation remains demanding, even after the recent drubbing.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
