Tesla is no longer a red-hot growth stock. Chief Executive Officer Elon Musk has said as much.
But even by that new standard with growth forecasts on Wall Street sinking rapidly the grim sales prediction from a key Tesla analyst on March 13 was still shocking. There will be zero growth in sales volumes for the electric-vehicle (EV) maker in 2024, Wells Fargo's Colin Langan said. And in 2025, it will be worse yet: Volumes will drop.
Shares of the company reacted appropriately, dropping 4.5 per cent to close at a 10-month low of US$169.50 (S$225.80) on March 13.
The stock has now fallen 32 per cent in 2024, missing out on a broader rally that has pushed the S&P 500 Index up 8.3 per cent.
The reason is clear: Tesla's ability to grow at the furious pace that its expensive valuation promises is no longer a guarantee. The company still trades at a multiple that is significantly higher than other mega-cap high-flyers, yet the pace of expansion in its revenue and profit has slowed markedly since 2023.
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Denne historien er fra March 15, 2024-utgaven av The Straits Times.
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