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Tesla, Inc. (TSLA), headquartered in Austin, Texas, designs, develops, manufactures, leases, and sells electric vehicles, energy generation, and storage systems. With a market cap of $671.6 billion, the company owns its sales and service network and sells electric powertrain components to other automobile manufacturers.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and TSLA definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the auto manufacturers industry. Tesla is the market leader in battery-powered electric cars, and its flagship Model 3 is the best-selling EV model.
Despite its notable strengths, Tesla slipped 24.5% from its 52-week high of $278.98, achieved on Sep. 15, 2023. Over the past three months, TSLA stock gained 19.5%, outperforming the Dow Jones Industrials Average’s ($DOWI) 6.1% gains during the same time frame.
In the longer term, shares of Tesla dipped 15.2% on a YTD basis and fell 14% over the past 52 weeks, underperforming DOWI’s 8.6% YTD gains and 17.5% returns over the last year.
To confirm the bearish trend, Tesla has traded below its 50-day moving average since early August, with slight fluctuations recently. However, the stock has been trading above its 200-day moving average since mid-August.
Tesla's performance has been influenced by increased competition from NIO's new L60, Hyundai Motor Company’s (HYMTF) updated electric SUV, and its own pricing strategies. Despite plans for a robotaxi event, Tesla has faced criticism for not achieving fully autonomous driving as promised. Concerns over the safety and effectiveness of Tesla's self-driving technology have been raised by critics and publications, casting doubt on the company's robotaxi ambitions.
On Sep. 3, TSLA shares gained about 1% after data from the China Passenger Car Association revealed that sales of China-made electric vehicles increased by 17% over the past month and 3% year over year.
Tesla’s rival, NIO Inc. (NIO), has had a rough ride. NIO's shares plunged 54.2% in 2024 alone and a staggering 62.3% over the past 52 weeks.
Wall Street analysts are cautious on Tesla’s prospects. The stock has a consensus “Hold” rating from the 34 analysts covering it. While TSLA currently trades above its mean price target of $198.29, the Street-high price target of $310 suggests an upside potential of 47.2%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
