After reporting 3% sales growth in Q4 last year, Tesla posted a troubling 9% decline in the first three months of 2024. From a consumer's perspective, higher borrowing costs make buying new cars much less affordable. Plus, Tesla has to deal with stiff competition these days, with well-funded Chinese EV makers making things difficult.
Tesla’s valuation. Even though shares are currently 56% off their all-time high, they still trade at a steep price-to-earnings ratio of 46.2.
I Bought Calls
Here’s why Tesla is declining
byu/Greedy-Cell-3130 inwallstreetbets
Posted by Greedy-Cell-3130
25 Comments
Tesla is for chumps anyway. Buy Lucid Motors.
Same idk how but shit goes bad and it’s a good thing
Its parabolic growth is done. Period.
We all know why, you don’t have to sugar coat it
Because they make garbage cars for garbage people
It’s definitely not because of their CEO.
They would probably be doing very well right now if they just made a good EV truck that can reuse machinery from the Y. It’s a very profitable market. Too bad they went into Minecraft garbage disposals instead. They’re throwing in the towel on cars and going all-in on AI. As someone who works in AI, I’m buying puts.
Here’s why I’ll be closing my puts
It’s literally just Elon.
People are not buying expensive cars. All car manufacturers will see this Tesla is just the tip of the spear because they sell direct and cannot push their cars on dealers.
So funny you mentioned higher borrowing cost… I just received and email from Tesla stating they are now offering .99% APR for financing a new model Y
If Elmo would just shut up. Tesla would do better
I’ll take out the sugar coat. There’s a saturation of Tesla vehicles. The CEO is bat shit crazy and people do not want to patronize or be associated with his antics. Product quality is sub-par. There has been little to no design changes in the styling of the cars. There are more competitions now and Chinese EVs are eating up their market share because they are innovating and cost less. I’m sure there are way more reasons.
It will hit $200 in few months
You’re all wrong. Everyone I know still aspires to owning a Tesla. We’re just not in the economic environment where people can afford to buy new cars. Once interest rates drop and the economy picks up, Tesla will easily recover.
Addressable market based on current product capabilities is dwindling. Hence the price decreases and financing deals
Feel-gooders, check. Green idiots, check. People who it may make sense for and have the money to buy a 50k car, check. People who were on the fence and bought and traded in, check. China stole all their shit because Musk is an idealist, check.
Models havent been refreshed. Quality issues. Dealerships far away for most folks. They either improve the tech and capabilities, build charger stations on every corner like Gas or start doing AI and robots.
Love Musk- but thats the Truth.
You’re welcome.
Weird you don’t mention the CEO spending $44bn on a loss-making social media company which he now seems more interested in running into the ground.
Musk has got bored of Tesla. It’s just a way to raise funds for fun projects like SpaceX and Twitter.
Here is why tesla is going back to $200
Yeah indeed you are all wrong and almost will pump it back to ATH in no time. He isn’t stupid and his comp package will depend on it. Shirt it people and then we will get a massive squeeze which is already set up and the consolidation triangle is getting very tight. Huge breakout coming, and yes it will be parabolic again.
When everyone hates on this stock and goes to short it, it takes off like a rocket. Watch and see and hold me to this. 300 easy this year and ATH next year if not by Christmas.
The problem with Tesla is all the sales from the future (2023, 2024) were pulled forward to 2021 & 2022 due to the hype and government incentives
The cars just ain’t that good
Tesla Is still priced at least 10x it’s value.. it’s just idiots into the Musk’s cult who push up prices…
https://preview.redd.it/29lcm0gy9yzc1.jpeg?width=1080&format=pjpg&auto=webp&s=196fa1fb4b9363fdb199fcce067158319cb3ca7f
Tesla will grow 30% perpetually.
Dont forget they had a 9% decline , despite the price cuts worldwide on their cars…
So that’s basically more like a 15-20% decline