Oh and did anyone spot the "1 Unfavorable Trend?" in the article?
Posted on 02/28/2024 8:04:30 AM PST by fireman15
Key Points:
Tesla stock is down 21% in 2024 so far, and it's down 52% from its all-time high.
Growth in Tesla's electric vehicle deliveries is decelerating.
Tesla has a plan to reignite growth, but there are no short-term fixes for this problem.
The electric vehicle giant isn't growing like it used to. Tesla (TSLA 1.81%) was the world's largest electric vehicle (EV) company by sales until the fourth quarter of last year when China-based BYD outsold it for the first time. Tesla once had the EV market almost entirely to itself, but now, it's grappling with a tsunami of competition from EV start-ups and legacy automakers entering the space.
At the same time, demand from consumers appears to be fading. EVs typically come with a premium price tag, and high interest rates are forcing more consumers to opt for cheaper gas-powered vehicles. Tesla slashed prices by an average of 25% in 2023 to help spur demand, which dented the company's profitability.
Tesla stock is down 21% year to date, and most of that decline happened after it reported its official results for full-year 2023. Tesla delivered a record 1.8 million vehicles for the year, but it was an increase of just 38% year over year, which marked the slowest pace of growth since 2020.
Tesla didn't offer a deliveries forecast for 2024, but analysts' estimates point to 2.2 million vehicles, which would mark a further slowdown in growth to just 22%.
Tesla's plan to reignite growth Tesla plans to start production of a cheaper EV model in 2025, which could be priced at $25,000. It might pull in more consumers who want a Tesla but can't afford the other models in its lineup.
(Excerpt) Read more at fool.com ...
It's unlikely any of the above will send Tesla stock skyward in the near term, but the 21% decline this year -- and the broader 52% drop from its all-time high -- could serve as a great entry point for investors willing to hold for the stock long term."
Despite very heavy promotion from governments around the world... the entire EV Market has lost much of it's appeal to consumers. The Motley Fool has been a long term supporter of Musk and Tesla but even they are having a hard time putting a happy face on this.
It’s energy divison hasn’t even started.
Oh and did anyone spot the "1 Unfavorable Trend?" in the article?
In before the many FReepers talking about all the money they lost, erhh ... MADE on Tesla stock.
“The Green Energy Transition” is a top-down, progressive social-engineering scheme. It is not based on human nature or in economic reality.
DC Marxists were able to force this scheme on Americans when interest rates were zero, debt was relatively low, globalism allowed for the cheapest inputs from anywhere (mostly China), the USD reigned-supreme, we had world peace, and oil costs (the base of green-energy) was very low.
All those things have reversed. We now face bloated debt and debt-service costs, war, inflation, and de-globalization. We are still coming to grips with the de-industrialization of the USA and the West.
DC marxists will continue to push their social-engineering schemes, but they will face push-back and even violence.
The results are finally being revealed of how bad a battery car is.
Tesla hybrid! That’s the answer.
Strange that 38% growth isn’t enough. I guess Bernie Madoff wasn’t so crazy.
You’ve been enjoying a nice markup when you can lower prices by 25% and still make a profit.
They have been working on it for 9 years... when are they going to start?
“On April 30, 2015, Tesla announced that it would sell standalone battery storage products to consumers and utilities.”
Tesla's “Megapack” grid batteries despite the hype are going to be manufactured in China and are still a lithium based solution... At the present time basically all lithium based batteries are still present a fire hazard. These massive batteries likely will be a significant challenge for both the environment and firefighters. If anyone can overcome these limitations it likely is Musk and Tesla, but I would not hold my breath, lithium batteries do not have an energy density that is any where close to hydrocarbon fuels. Pumping water up a hill during times of slack demand and then generating power using hydroelectric generators during times of peak demand is still likely to be a much simpler and less dangerous solution that would not have to be manufactured in China out of an increasingly rare metal.
“Ecological devastation is a bleak reality
The environmental fallout from lithium mining is clear and far-reaching. Massive quantities of fresh water, classified as a precious resource in these arid regions, are diverted for lithium mining operations, fueling the salt flats brine. This leaves local communities and wildlife parched. Sulfuric acid and sodium hydroxide used in lithium extraction penetrate the soil and water, poisoning ecosystems and endangering species. Research from the journal Proceedings of the Royal Society shows that two flamingo species in Chile are threatened because of lithium mining.”
https://www.mining-technology.com/analyst-comment/lithium-mining-negative-environmental-impact/
Is this it?
The EV fad is over.
Tesla is a well-executed example of a flawed concept (universal electric power for over-the-road vehicles).
Nothing is wrong with having a Tesla. You can use it in Maryland or Missouri for the things people in Florida use golf carts for. It’s more than an upgraded golf cart, it’s an actual car.
But it’s not acceptable (yet) for long-range working use - if you want it for your vacation and can suss out the recharge options, that’s fine I suppose.
But the two killers for a universal rollout are value going to zero or a negative number when battery replacement is required, and power generation for a million EVs, or ten million for that matter, in NYC or LA.
That electric infrastructure will never be created, and everyone knows it.
Elon Musk is no longer even a passive Obama-Biden supporter. The Washington New York financial-tax-industrial-government complex is fighting him in every law they pass, every sentence they write, and every breathe they take.
Tesla rode a wave of enthusiasm and unrealistic expectations that resulted from massive amounts of government funded leftist eco-loon propaganda. Musk is a very capable person who was at the right place at the right time. But now that reality is finally starting to smack early adopters in the face and others are starting to notice... Every manufacturer who has a large stake in EVs is going to be losing incredible amounts of money.
Tesla stock went from $407 a share in November of 2021 to $183 a share in January of 2024 little more than 2 years later. There has been a slight rally since, but the trend is still obvious. These glorified self-driving golf carts are not a good solution for most people's transportation needs. The hype is wearing off and people have started to notice.
The guy next to me in my office has had a Tesla Model Y for about a year now. I asked him what he is going to do with it when he needs to replace the battery in six years. His reply was “I will probably junk it”.
I also tease him about the fact that I appreciate when he parks it way away from my Tacoma on the other side of the parking lot. So that when it catches on fire, my truck doesn’t get caught in the blaze. He thought I was joking at first. I wasn’t. I was serious. I NEVER park next to it.
Tesla went to a low of $112/share last year. The guy next to me bought some at $120.
At the time I was waiting for it to break $100/share to buy in. I had an order in, but it expired.
There are only so many Starbuck moms to buy EVs.
I bought 50 shares about 6 weeks ago at $184...today’s share rate is $203. It is in some type of recovery phase.
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