Tesla’s (NASDAQ: TSLA) 2024 car deliveries dropped to 1.79 million from 1.81 million the year before, marking the company’s first-ever annual decrease.
Growing operational challenges and competitive pressures were blamed for this decline. The industry leader in electric vehicles faces fierce competition from Ford, General Motors, BYD, and Hyundai.
In addition, Tesla is resolving inventory problems in North America and negotiating strategic obstacles in Europe. The company’s performance has been greatly affected by these variables, which has resulted in a discernible decline in the value of its shares. Furthermore, noting various concerns, Bank of America recently lowered Tesla’s shares from Buy to “Neutral.”
Bank of America lowered Tesla’s shares from Buy to Neutral in light of the latest delivery data, citing significant execution risks and worries about the company’s current valuation. The bank has increased its price target for Tesla from $400 to $490 in spite of this reduction, indicating that the expected robotaxi service might have an effect on the company’s overall worth.
Tesla’s stock fell sharply after the downgrading and delivery news, and it is now trading at $392.91. With a day low of $391.50 and a high of $414.33, the stock started the day at $405.81. Tesla’s stock price has ranged from a low of $138.80 to a high of $488.54 during the last 12 months.
Tesla intends to launch more reasonably priced and driverless cars in 2025 as part of its strategy to broaden its market reach. In the next years, the firm hopes to expand at a pace of 20–30%. In the fourth quarter of 2024, Tesla deployed 11.0 GWh of energy storage, marking another significant milestone.
This accomplishment demonstrates Tesla’s dedication to expanding its product line beyond electric cars. The business’s strategic ambitions are not without difficulties, however. It has been suggested that Elon Musk’s political activities, especially his backing of President-elect Donald Trump, might divert attention away from Tesla’s primary economic functions.
The market’s cautious approach in the face of these events is reflected in Tesla’s recent stock performance. There have been notable swings in the stock’s closing prices recently, particularly in December 2024 and the first few days of January 2025. Interestingly, on January 6, 2025, the stock finished at $411.05 before falling to $392.91 the next day.
With a recommendation mean of 2.77, analysts have recommended that Tesla be held. With a high of $528.00 and a low of $120.00, the target price for Tesla’s stock fluctuates greatly, reflecting a range of investor attitude about the company’s prospects for the future.
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