Why Tesla’s stock is so much cheaper today | CNN Business (2024)

FAQs

What is the future of Tesla stock? ›

TSLA Stock 12 Month Forecast

Based on 34 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $182.58 with a high forecast of $310.00 and a low forecast of $22.86. The average price target represents a 24.16% change from the last price of $147.05.

Does Tesla pay a dividend? Does it plan to? Tesla has never declared dividends on our common stock. We intend on retaining all future earnings to finance future growth and therefore, do not anticipate paying any cash dividends in the foreseeable future.

Tesla shares jumped on Tuesday evening after announcing new plans for new and more affordable vehicles. Investors applauded the decision to use existing factories to put in place this new strategy.

As of today (2024-04-23), Tesla's share price is $142.13. Tesla's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $4.31. Therefore, Tesla's PE Ratio for today is 32.98.

Gianarikas is relatively bullish on Tesla shares, rating them Buy with a price target of $234 a share, though he expects numbers will look weak. Wall Street is projecting operating profit margins of just under 7%, down from about 11% in the first quarter of 2023 and down from about 19% in the first quarter of 2022.

Tesla shares have dropped more than 40 per cent year-to-date as Elon Musk's EV giant has struggled with layoffs and product discounts in the last few months.

Tesla is a leading auto manufacturer and one of the most valuable companies in the world. As of 2024, the largest shareholder is CEO Elon Musk, who holds about a fifth of Tesla equity. Besides Musk, the largest shareholders are asset managers, like BlackRock and Vanguard.

Dividend Yield

Apple's annual dividend in 2021 was $0.88 ($0.22 paid quarterly). Based on Apple's stock price as of March 1, 2022 of around $163 per share, the dividend yield is approximately 0.50%.

Tesla stock plunged 29.7% through April 11, one of the worst performers on the S&P 500 this year Shares are 58% below their late 2021 all-time high. But Tesla has largely tracked declining earnings estimates amid weaker-than-expected deliveries despite ongoing price cuts.

What should Tesla share price be? ›

With 2023 in the rearview mirror, analyst consensus now has 2024 Tesla earnings below 2023's level. That signals another year of earnings declines for this growth stock. Wall Street expects Tesla earnings per share of just $2.96 a share in 2024, according to FactSet. That would be a around a 5% decline vs.

Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio.

Tesla's current ratio for fiscal years ending December 2019 to 2023 averaged 1.5x. Tesla's operated at median current ratio of 1.5x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Tesla's current ratio peaked in December 2020 at 1.9x.

Wall Street expects Tesla earnings per share of just $2.96 a share in 2024, according to FactSet. That would be a around a 5% decline vs. last year's $3.12. That was a 23% decline vs. 2022. Analyst project a solid increase in 2025 to $4.13 a share.

Ashwath Damodaran Sees a Buying Opportunity in Tesla Stock

I believe that while 2024 could be a tough year for Tesla amid the slowing sales growth and falling margins, the company could see much better days in 2025 and beyond, especially as interest rates revert to more normalized levels.

It's unlikely Tesla's returns going forward will come anywhere near resembling the last five years. So, investors shouldn't expect a $1,000 price per share by the end of the decade.

Tesla (TSLA) stock is angling lower in 2024, falling around 30% as analysts project 2024 vehicle deliveries could undercut last year's total with profit forecasts continuing to fall ahead of first-quarter earnings.