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 fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 428.270
Low
25.28
Averages
401.93
High
600.00
Current: 428.270
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.
Tesla's Stock Declines Post Earnings Report
- Declining Financial Performance: Tesla's January earnings report revealed that while quarterly revenue and profitability exceeded analyst expectations, total deliveries fell by 16% year-over-year to 495,570 units, indicating pressure in a competitive EV market.
- Significant Capital Expenditure Increase: Tesla plans to ramp up capital expenditures to over $20 billion in 2025, primarily directed towards battery technology, the CyberCab autonomous taxi, and related Robotaxi systems, showcasing the company's ambition in future technologies.
- Product Line Adjustments: Tesla will gradually wind down production of the high-end Model S sedan and Model X SUV, focusing instead on the more marketable Models 3, Y, and the Cybertruck, reflecting a strategic shift in the company's focus.
- High Valuation Risks: With a forward P/E ratio nearing 205 and a five-year PEG ratio of 6.8, Tesla's current high valuations pose risks for investors, even if future projects like Optimus and CyberCab prove successful.
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- Price Advantage: The YU7 is priced 10,000 yuan ($1,450) lower than the Model Y, attracting a significant number of consumers by offering a more cost-effective option, thereby solidifying its market position.
- Market Dynamics: Despite a general slowdown in the electric vehicle market, the strong sales of the YU7 indicate consumer acceptance of the new model, posing a threat to Tesla's market share, particularly in the new energy vehicle sector.
- International Expansion Plans: Xiaomi plans to expand into the European market in 2026, reflecting its ambition in the global EV market and aiming to enhance brand influence and market share through internationalization strategies.
See More
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- Declining Deliveries: Tesla's fourth-quarter deliveries for 2025 fell by 16% year-over-year to 495,570 units, indicating pressure on its core automotive business, which could impact future market share and investor confidence.
- Surging Capital Expenditure: Tesla plans to ramp up capital expenditures to over $20 billion in 2025, aimed at supporting the development of battery technology, the CyberCab autonomous taxi, and AI projects, although this may increase short-term financial burdens.
- Product Line Adjustment: Tesla will gradually wind down production of the high-end Model S and Model X, focusing instead on the more competitively priced Model 3, Model Y, and the upcoming Cybertruck, reflecting the company's sensitivity to market demand changes.
- Valuation Pressure: With a forward P/E ratio nearing 205 and a five-year PEG ratio of 6.8, Tesla's stock indicates extremely high market expectations for future growth, yet the success of new products like Optimus and CyberCab remains uncertain, increasing investment risks.
See More
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- Impact of Automation: Internal documents from Amazon suggest that the company may substitute as many as 600,000 projected future roles with automation, which not only affects employee job opportunities but also raises concerns about the future labor market.
- Capital Expenditure Plans: Amazon expects to invest about $200 billion in capital expenditures by 2026, focusing on significant opportunities like AI, indicating the company's ambitious stance on technology investments.
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See More
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- Impact on China Market: As the world's largest EV market, China saw a 20% year-over-year sales drop and a 55% decline from December, primarily due to new purchase taxes and reduced incentives, leading to a more market-driven environment that adversely affected sales for companies like Tesla.
- North America Challenges: North American EV sales fell by 33% year-over-year, highlighting the negative impact of the expiration of federal EV tax credits on market dynamics, which may lower consumer purchasing willingness and hinder overall market growth.
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See More
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- Tech Sector Retreat: U.S. stocks experienced a significant decline on Thursday, with the S&P 500 down 1.57%, the Dow Jones down 1.34%, and the Nasdaq 100 down 2.04%, primarily driven by a sell-off in the Magnificent Seven tech stocks, indicating concerns over the profitability outlook in the tech sector.
- Cisco Systems Warning: Cisco Systems saw its stock plummet over 12% after forecasting that rising memory chip prices would erode profitability, raising investor concerns about future performance and potentially diminishing market confidence.
- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
- Positive Earnings Season: Despite the overall market downturn, over 76% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings projected to grow by 8.4%, indicating strong corporate profitability that may provide support for the market.
See More
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- Declining Financial Performance: Tesla's January earnings report revealed that while quarterly revenue and profitability exceeded analyst expectations, total deliveries fell by 16% year-over-year to 495,570 units, indicating pressure in a competitive EV market.
- Significant Capital Expenditure Increase: Tesla plans to ramp up capital expenditures to over $20 billion in 2025, primarily directed towards battery technology, the CyberCab autonomous taxi, and related Robotaxi systems, showcasing the company's ambition in future technologies.
- Product Line Adjustments: Tesla will gradually wind down production of the high-end Model S sedan and Model X SUV, focusing instead on the more marketable Models 3, Y, and the Cybertruck, reflecting a strategic shift in the company's focus.
- High Valuation Risks: With a forward P/E ratio nearing 205 and a five-year PEG ratio of 6.8, Tesla's current high valuations pose risks for investors, even if future projects like Optimus and CyberCab prove successful.
See More
Xiaomi's YU7 Electric SUV Outsells Tesla in January
- Sales Leadership: Xiaomi's YU7 electric SUV sold 37,869 units in January 2025, surpassing Tesla's Model Y, which sold 16,845 units, making it the best-selling vehicle in China and demonstrating Xiaomi's strong competitive position in the EV market.
- Price Advantage: The YU7 is priced 10,000 yuan ($1,450) lower than the Model Y, attracting a significant number of consumers by offering a more cost-effective option, thereby solidifying its market position.
- Market Dynamics: Despite a general slowdown in the electric vehicle market, the strong sales of the YU7 indicate consumer acceptance of the new model, posing a threat to Tesla's market share, particularly in the new energy vehicle sector.
- International Expansion Plans: Xiaomi plans to expand into the European market in 2026, reflecting its ambition in the global EV market and aiming to enhance brand influence and market share through internationalization strategies.
See More
Tesla Stock Decline Amid Strategic Shift
- Declining Deliveries: Tesla's fourth-quarter deliveries for 2025 fell by 16% year-over-year to 495,570 units, indicating pressure on its core automotive business, which could impact future market share and investor confidence.
- Surging Capital Expenditure: Tesla plans to ramp up capital expenditures to over $20 billion in 2025, aimed at supporting the development of battery technology, the CyberCab autonomous taxi, and AI projects, although this may increase short-term financial burdens.
- Product Line Adjustment: Tesla will gradually wind down production of the high-end Model S and Model X, focusing instead on the more competitively priced Model 3, Model Y, and the upcoming Cybertruck, reflecting the company's sensitivity to market demand changes.
- Valuation Pressure: With a forward P/E ratio nearing 205 and a five-year PEG ratio of 6.8, Tesla's stock indicates extremely high market expectations for future growth, yet the success of new products like Optimus and CyberCab remains uncertain, increasing investment risks.
See More
Sanders Critiques Amazon's $200 Billion AI Investment
- Sanders' Accusation: Senator Bernie Sanders criticized Jeff Bezos for planning a $200 billion investment in AI and robotics while Amazon replaces hundreds of thousands of workers with machines, raising ethical concerns about the company's practices.
- Impact of Automation: Internal documents from Amazon suggest that the company may substitute as many as 600,000 projected future roles with automation, which not only affects employee job opportunities but also raises concerns about the future labor market.
- Capital Expenditure Plans: Amazon expects to invest about $200 billion in capital expenditures by 2026, focusing on significant opportunities like AI, indicating the company's ambitious stance on technology investments.
- Market Reaction: Amazon's stock closed down 2.25% on Thursday and fell another 0.63% in after-hours trading, reflecting market concerns about the company's future performance, particularly with poor momentum rankings in the short and medium term.
See More
Global Electric Vehicle Sales Decline Significantly
- Global Sales Data: In January 2026, global electric vehicle sales reached 1.2 million units, reflecting a 3% year-over-year decline and a staggering 44% drop from December 2025, indicating a sharp decrease in market demand that could impact revenue expectations for related companies.
- Impact on China Market: As the world's largest EV market, China saw a 20% year-over-year sales drop and a 55% decline from December, primarily due to new purchase taxes and reduced incentives, leading to a more market-driven environment that adversely affected sales for companies like Tesla.
- North America Challenges: North American EV sales fell by 33% year-over-year, highlighting the negative impact of the expiration of federal EV tax credits on market dynamics, which may lower consumer purchasing willingness and hinder overall market growth.
- European Market Resilience: Despite challenges, Europe sold over 320,000 EVs in January 2026, marking a 24% increase year-over-year, demonstrating the region's ongoing efforts to boost sales to meet EU emissions targets, particularly with subsidies reintroduced in key markets like the UK, Germany, and France.
See More
U.S. Stocks Plunge as Tech Sector Weighs Down Market
- Tech Sector Retreat: U.S. stocks experienced a significant decline on Thursday, with the S&P 500 down 1.57%, the Dow Jones down 1.34%, and the Nasdaq 100 down 2.04%, primarily driven by a sell-off in the Magnificent Seven tech stocks, indicating concerns over the profitability outlook in the tech sector.
- Cisco Systems Warning: Cisco Systems saw its stock plummet over 12% after forecasting that rising memory chip prices would erode profitability, raising investor concerns about future performance and potentially diminishing market confidence.
- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
- Positive Earnings Season: Despite the overall market downturn, over 76% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings projected to grow by 8.4%, indicating strong corporate profitability that may provide support for the market.
See More
