Can Tesla ETFs Maintain New-Found Winning Momentum?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 09 2024
0mins
Should l Buy TSLA?
Source: NASDAQ.COM
- Tesla Stock Performance: Tesla's stock has surged 44.7% in the past month, reaching a six-month high, despite a 6.7% fall over the past year.
- Q2 Deliveries: Tesla announced better-than-expected deliveries for Q2 of 2024, indicating improved demand and easing concerns about excess inventory.
- Focus on AI and Autonomous Driving: Tesla is transitioning to a technology and robotics company driven by AI and autonomous driving technology, aiming to introduce "robotaxis" soon.
- Expected Growth: Analysts predict improved profit margins for Tesla, expecting a return to profit growth next year with higher growth rates compared to the industry.
- EV Market Outlook: The electric car sales market remains robust, with China leading in growth, and IEA forecasts a 20% increase in EV sales in 2024.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 392.500
Low
25.28
Averages
401.93
High
600.00
Current: 392.500
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Expenditure Concerns: Analysts express concerns that Tesla may push capital spending above $20 billion in 2026 due to investments in Terafab and other AI-related projects, which could impact the company's financial health and future growth potential.
- Market Reaction Expectations: Options trading suggests a potential 6% share price move following the earnings report, with investors keenly awaiting Elon Musk's presentation, particularly regarding the robotaxi rollout, which could influence Tesla's competitive position against rivals.
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- Increased Cash Burn: Tesla's capital expenditures are projected to exceed $19 billion this year, more than doubling from $9 billion last year, leading to a cash burn of $4.9 billion, which could negatively impact the company's short-term financial health.
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- Capital Expenditure Concerns: Analysts express concerns that Tesla may push capital spending above $20 billion in 2026 due to investments in Terafab and other AI-related projects, which could impact the company's financial health and future growth potential.
- Market Reaction Expectations: Options trading suggests a potential 6% share price move following the earnings report, with investors keenly awaiting Elon Musk's presentation, particularly regarding the robotaxi rollout, which could influence Tesla's competitive position against rivals.
See More
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- Increased Cash Burn: Tesla's capital expenditures are projected to exceed $19 billion this year, more than doubling from $9 billion last year, leading to a cash burn of $4.9 billion, which could negatively impact the company's short-term financial health.
- Widening Delivery and Production Gap: Tesla delivered 358,023 vehicles in Q1, showing year-over-year growth, but produced 408,386 vehicles, resulting in a delivery-production gap of over 50,000 units, indicating pressure on demand absorption that investors will closely monitor.
- Shift in Future Investment Focus: Tesla plans to direct most of its investments towards Cybercab production lines and Optimus robots rather than traditional EV models, with CEO Elon Musk stating that 2026 will be a “big capex year,” indicating the company's preparation for future technological transformations.
See More
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See More
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- Market Close Performance: Despite the uptick in futures, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all declined about 0.6% at Monday's close, reflecting ongoing uncertainty surrounding peace negotiations that may impact short-term investment decisions.
- Oil Price Volatility: In Tuesday's trading, WTI crude futures fell 0.07% to $89.61 per barrel, while Brent crude futures dropped 0.02% to $98.46 per barrel, indicating market concerns over global economic prospects that could affect energy-related stocks.
- Stock Movements: Poet Technologies saw its shares rise after the CFO's dismissal, Navitas Semiconductor gained over 2% following the appointment of a new independent director, and Kyverna Therapeutics surged 29% after reporting positive results in a clinical trial, highlighting market interest in specific tech and biotech companies.
See More
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- Ceasefire Extension: President Trump has extended the ceasefire with Iran following a stock market decline due to canceled talks, aiming to stabilize market sentiment and prevent further geopolitical tensions.
- Market Reaction: The stock market's drop reflects investor uncertainty regarding future economic and political conditions, and Trump's decision may help restore confidence among investors.
- Tesla Earnings Upcoming: Amid this backdrop, Tesla is set to release its earnings report, which is expected to significantly impact the stock market, particularly in the current unstable economic environment.
- Geopolitical Implications: Trump's decision to extend the ceasefire not only adjusts U.S. policy towards Iran but may also affect diplomatic relations with other countries, potentially leading to far-reaching consequences for global markets.
See More
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- Earnings Performance: United Airlines reported solid earnings on Tuesday afternoon, yet lowered its guidance partly due to high jet fuel prices, indicating cost pressures impacting profitability.
- Stock Fluctuations: The stock ticked up slightly after hours, but remains 19% below its January high, although it has risen 12% over the past month, reflecting market confidence in its short-term performance.
- Industry Dynamics: Boeing's shares have dropped 12% in the last three months and are 14% off their 52-week high, highlighting concerns in the aerospace manufacturing sector.
- Dividend Yield: AT&T offers a quarterly dividend of 28 cents per share, yielding 4.29%, and despite a 13% decline since its September peak, it continues to attract some investor interest.
See More
