In recent days, Tesla’s stock has been sluggish, especially after the news that the company’s annual vehicle deliveries have decreased compared to the previous year. This has heightened performance concerns and led to a notable drop in share prices. Despite this, some investors are considering this a possible buying opportunity, while others are cautious about potential further declines and may wait for the upcoming Q4 2024 earnings report at the end of the month for a more informed investment decision.
Tesla announced it delivered 1,789,226 vehicles in 2024, which is 19,355 less than the 1,808,581 vehicles delivered in 2023, missing the market forecast of 1.8 million. Previously, Tesla’s stock was buoyed by close ties between Elon Musk and Donald Trump, the U.S. President-elect, shortly after Trump’s election in November, with the stock skyrocketing 66.3% to $403.84 by the end of December. However, as expectations of a “Trump bump” faded, combined with a deceleration in vehicle delivery growth, Tesla’s stock dropped nearly 20% over the past five trading days.
Some analysts suggest this might be a short-term correction, given the potential catalysts like the expected release of affordable electric cars and autonomous robo-taxi services, which could drive future growth. Barron’s highlighted that although delivery numbers are critical, investors may focus more on the affordable cars and robo-taxi service.
To monitor trends and make more informed decisions, it’s advisable to review Tesla’s detailed performance and progress in new ventures outlined in the Q4 2024 earnings report scheduled for January 30th, Korean time. Also, the performance of other major U.S. tech companies like Microsoft, Apple, Amazon, Netflix, and Goldman Sachs—expected to report results between the end of this month and early next month—could influence Tesla’s investment sentiment. Results exceeding expectations might boost Tesla’s stock, whereas below-expectation results from other tech companies could exert downward pressure.
According to financial investment industry insiders, U.S. companies’ earnings reports are expected to be released more widely from mid-January, which should clarify the direction of Tesla’s stock given the early-year market expectations.