Data News > Pre Market Movers: The Rise and Fall of Tesla: A Stock News Report

Pre Market Movers: The Rise and Fall of Tesla: A Stock News Report

By KlickAnalytics Data Insights  |   April 3, 2024 09:30AM ET

Key Points

- Nasdaq stocks are performing well, but Tesla's stock is down over 30% this year
- Tesla's weak first-quarter deliveries have been described as an 'unmitigated disaster'
- Wall Street analyst predicts an 87% downside for Tesla stock
- Rivian Automotive Inc. beat delivery predictions, but Tesla's sentiments soured the otherwise positive news
- Tesla shares tumbled to a six-month low after reporting a sharp fall in worldwide sales

The Nasdaq has been performing exceptionally well, with growth stocks thriving in the current macroeconomic environment. However, one notable exception to this trend is Tesla, whose stock has plummeted by over 30% this year. This decline has raised concerns about the company's future prospects and has prompted analysts to reassess their outlook on the stock.

Tesla's first-quarter delivery figures have been described as an 'unmitigated disaster' by industry experts. The company experienced its first decline in nearly four years, falling well short of Wall Street's estimates. This disappointing performance has been attributed to mounting competition from China, which has posed a significant challenge to Tesla's dominance in the electric vehicle market.

One Wall Street analyst, Gordon Johnson, has predicted an 87% downside for Tesla stock, citing concerns about the company's output and sales. According to Johnson, Tesla is vastly overpriced given its current performance, and he expects the stock to fall significantly in the near future.

In contrast to Tesla's struggles, Rivian Automotive Inc., an Amazon-backed EV maker, exceeded Wall Street analyst predictions with its delivery numbers. Despite this positive news, Tesla's sentiments soured the otherwise upbeat delivery numbers for Rivian. This reaction reflects the growing skepticism surrounding Tesla's ability to maintain its position in the electric vehicle market.

As a result of its disappointing sales performance, Tesla's shares tumbled to a six-month low. The company reported a sharp fall in worldwide sales, signaling increased competition and slowing demand for electric vehicles. This downward trend has raised concerns about the company's long-term viability and has led to a reassessment of its stock's value in the market.

Overall, while the Nasdaq has seen significant success in recent months, Tesla's struggles have raised doubts about the company's future prospects. With mounting competition and declining sales, the once-dominant electric vehicle maker is facing significant challenges that have led to a reevaluation of its stock's value in the market.

About TSLA
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.

For more information:
  • Up/Down Rally
  • Price Distribution
  • Analyst Recommendations
  • Earning Price Impact Analysis
  • Seasonality

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