In February, Tesla (TSLA) stock is showing signs of recovery after a rough January where it dropped over 20%. The EV giant reported disappointing fourth-quarter earnings and revenue, leading to a decrease in analyst consensus for 2024 earnings compared to the previous year. Wall Street now expects Tesla to earn $3.10 per share in 2024, slightly below the $3.12 earned in 2023. This represents a 23% decline from 2022 levels. Despite projections for a solid increase in 2025, with analysts expecting $4.24 per share, there are concerns about Tesla’s performance in the near future.
The stock has already retreated around 18% in 2024, falling below key support levels. CEO Elon Musk’s cautious outlook on Jan. 24 has contributed to the uncertainty surrounding Tesla’s future. Morgan Stanley analyst Adam Jonas noted a bearish sentiment among institutional investors towards TSLA.
Following Tesla’s disappointing Q4 earnings report, profit projections for 2024 were slashed. The company reported a 40% decline in earnings per share to 71 cents, with revenue increasing by 3.5% compared to Q4 2022. Tesla’s gross profit margin also decreased, causing concern among investors.
Wedbush Securities removed Tesla stock from its list of “best ideas” for 2024, highlighting several issues that need to be addressed by Musk and the company for a potential recovery. Analysts are urging Tesla to make strategic decisions to improve profitability and regain investor confidence.
Despite record deliveries in Q4, with Tesla delivering over 460,000 Model 3/Y vehicles, concerns about Tesla’s future performance persist. The Cybertruck event in November 2023 generated excitement, but subsequent earnings reports have dampened optimism.
As Tesla navigates challenges in 2024, investors and analysts are closely monitoring the company’s decisions regarding pricing strategies, profit margins, and demand fluctuations. The lack of specifics from Musk and the company has led to uncertainty about Tesla’s future performance. Analysts are urging transparency and strategic planning from Tesla to address the current concerns surrounding the stock.