In 2024, the earnings estimates for Tesla have dropped below the level for 2023, indicating another year of negative growth for the automotive giant. This decrease in earnings comes on the heels of a sharp decline in Tesla’s stock value, hitting a new eight-month low. Analysts are predicting a 1% decline in earnings per share for 2024, following a 23% decrease in 2023. This trend of declining earnings is causing concern among investors and analysts, as they see a pattern of diminished growth for the once high-flying company that is now struggling to maintain its momentum.
The situation has been exacerbated by a report that German software company SAP will no longer be receiving company cars from Tesla due to late deliveries and price fluctuations. This represents a further blow to Tesla’s fleet sales, as other companies such as Hertz and Sixt have also slashed Tesla EVs from their rental fleets. In addition to this, Tesla has also raised the price of its Model 3 Long Range variant in the U.S., further complicating the company’s image.
The decrease in earnings estimates is compounded by the recent reduction in prices for Model Y variants, creating further challenges for Tesla’s overall financial performance. The company’s stock value has fallen significantly in the beginning of 2024, with Tesla being the worst performer in the S&P 500. These developments have prompted concerns about the company’s long-term prospects and have raised questions about the independence of the board from CEO Elon Musk. As a result, the future of the once high-flying automaker is shrouded in uncertainty.