Tesla is the worst performing stock in the S&P 500. Analysts say it has further to fall | CNN Business
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Elon Musk’s Tesla once represented the future of automaking. Now the company’s own future is in question.
  • AutoTL;DR@lemmings.worldBEnglish
    0·
    4 months ago

    This is the best summary I could come up with:

    The once red-hot electric vehicle maker — heralded as part of the so-called Magnificent Seven behemoth tech stocks — is currently the worst performer in the S&P 500 this year, down nearly 32% since January.

    But a new report by Wells Fargo analyst Colin Langan on Wednesday offers a darker picture than previously imagined.

    Langan predicts that Tesla’s growth will remain flat this year and then decline in 2025 as competition increases, deliveries disappoint and the beleaguered auto and tech company is forced to cut prices again.

    Analysts said concerns are mounting as demand for electric vehicles slows and as Chinese rivals take an ever greater share of the global market.

    With the exception of Tesla, all of the Magnificent Seven companies (that also includes Apple, Amazon, Meta, Google, Nvidia and Microsoft) saw double- or triple-digit earnings growth in the final three months of 2023.

    But even with the recent drop in price, Tesla’s stock is still very expensive when compared to its actual earnings and profits, said Langan.

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