What went wrong with Tesla?
Tesla, Inc. which's reporting Q4 earnings tomorrow Jan 24, 2024, has turned to the bearish market since this year started, in fact, the stock revisited the $260.0 level in December which was achieved in October of last year, and now the stock trades at $209.0.
See, Chinese automaker #BYD surpassed Tesla in global quarterly sales for the first time to become the world's top seller of electric vehicles, capping a year of new model launches that saw domestic sales soar in the US. Tesla sold 480,000 vehicles in the October-December quarter falling below BYD's previously announced total of 520,000 units. BYD's electric vehicle sales for the quarter climbed 60% year-on-year following a flurry of model launches. Its Seagull compact EV was released in April with prices starting at 70,000 yuan ($9,900), selling more than 280,000 units by the end of the year. Tesla stock has been in a series of daily losses.
As a result, the Relative Strength Index (RSI) continues to signal oversold conditions for Tesla’s stock. The stock only closed each day of this month losing, hovering now around $209.0.
I charted the stock against the SP500 below (the orange is the S&P500), and we can see the large disparity in 2024. Actually, the top 2 underperformers in the consumer cyclical in the S&P500 this month are Etsy, Inc. which lost 17.34%, and Tesla losing -17.32% since Jan 1 and as of today.
Now, as the Q4 earnings call is due tomorrow, Wall Street analysts expect that Tesla will report revenues of $25.76 billion in Q4 of 2023, reflecting a growth of approximately 6% compared to the same quarter of the previous year. However, for earnings, analysts project a median EPS of $0.61 for Q4 on a GAAP basis, representing a significant decline of approximately 42.7% from the previous quarter. On a non-GAAP basis, the median EPS expectation is $0.74, which still reflects a notable decrease of about 38.2% compared to the previous year. Tesla managed to grow its revenue in 2022 and 2021 by 51.4% and 70.7%, respectively. That matched an ERP growth of 115.0% and 648.0%.
If Tesla makes a reversal tomorrow, it will signal a potential new high for the S&P 500 following Friday's jump, considering the mega-caps closed the day bullish, with Netflix winning 10% in the after-hours today.
Tesla, Inc. which's reporting Q4 earnings tomorrow Jan 24, 2024, has turned to the bearish market since this year started, in fact, the stock revisited the $260.0 level in December which was achieved in October of last year, and now the stock trades at $209.0.
See, Chinese automaker #BYD surpassed Tesla in global quarterly sales for the first time to become the world's top seller of electric vehicles, capping a year of new model launches that saw domestic sales soar in the US. Tesla sold 480,000 vehicles in the October-December quarter falling below BYD's previously announced total of 520,000 units. BYD's electric vehicle sales for the quarter climbed 60% year-on-year following a flurry of model launches. Its Seagull compact EV was released in April with prices starting at 70,000 yuan ($9,900), selling more than 280,000 units by the end of the year. Tesla stock has been in a series of daily losses.
As a result, the Relative Strength Index (RSI) continues to signal oversold conditions for Tesla’s stock. The stock only closed each day of this month losing, hovering now around $209.0.
I charted the stock against the SP500 below (the orange is the S&P500), and we can see the large disparity in 2024. Actually, the top 2 underperformers in the consumer cyclical in the S&P500 this month are Etsy, Inc. which lost 17.34%, and Tesla losing -17.32% since Jan 1 and as of today.
Now, as the Q4 earnings call is due tomorrow, Wall Street analysts expect that Tesla will report revenues of $25.76 billion in Q4 of 2023, reflecting a growth of approximately 6% compared to the same quarter of the previous year. However, for earnings, analysts project a median EPS of $0.61 for Q4 on a GAAP basis, representing a significant decline of approximately 42.7% from the previous quarter. On a non-GAAP basis, the median EPS expectation is $0.74, which still reflects a notable decrease of about 38.2% compared to the previous year. Tesla managed to grow its revenue in 2022 and 2021 by 51.4% and 70.7%, respectively. That matched an ERP growth of 115.0% and 648.0%.
If Tesla makes a reversal tomorrow, it will signal a potential new high for the S&P 500 following Friday's jump, considering the mega-caps closed the day bullish, with Netflix winning 10% in the after-hours today.