Would you buy a Tesla today? As it seems, the pioneer has become the hunted. The company became globally known for its idea to produce sustainable electric cars. However, since then, a lot of competitors have joined the electric car market. Could the last quarter convince? And does that justify an entry for you as an investor?

Quarterly numbers below expectations In the fourth quarter, Tesla recorded an earnings per share of $0.71, compared to $1.19 in the previous year. Analysts had expected $0.74 per share. Revenue was $25.17 billion, compared to $24.32 billion in the previous year. Analysts had expected $25.76 billion.

Significantly lower growth rate of vehicle volume expected The company stated that the growth rate of vehicle volume in 2024 could be „significantly lower“ than in 2023, as it plans to launch the next generation vehicle at the Gigafactory Texas.

New mass-market electric car planned for 2025 Tesla plans to produce a new mass-market electric vehicle with the code name „Redwood“ by mid-2025 and has reached out to suppliers. The new models also include an entry-level model for $25,000, according to Reuters, and the electric vehicle is expected to be a compact crossover. Tesla is trying to attract new buyers with high discounts. However, this does not please everyone. Many rental car companies have announced that they will return their Tesla fleets. Due to the price slump, losses are threatening in the residual value calculation.

Despite correction: P/E ratio still over 62 Conclusion: Since the beginning of the year, the stock has been sold off significantly. However, the 5-year chart does not look good either. The sentiment among analysts is also only mediocre. 20 out of 44 analysts recommend buying, 22 recommend holding, and 8 analysts recommend selling. The average analyst price target is $214 (lowered from last month). Some analysts believe a price of $345 is possible. Despite the significant correction, Tesla’s stock is still very expensive with a P/E ratio of 62.