close
close

“Tesla Stock Looks Uncertain”: Redditor Draws Comparison to Toyota – Bearish Tech Trend Prevails – Tesla (NASDAQ:TSLA)

0


Crypto whales are increasing – are you too?

New research shows the biggest crypto buyers are back. And this time? They could hold on to the possibility of Bitcoin breaking $100,000 in 2024. You don't want to miss out on the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what's going on and what you should buy… Get access to Benzinga's best crypto research and investing for just $1.


Tesla Inc (NASDAQ:TSLA) shares traded lower on Friday after reports suggested Tesla has shelved its plans for a budget vehicle.

The report also suggested that the company may instead choose to focus on self-driving technologies. CEO Elon Musk rejects these claims and questions the credibility of the reports.

ENTER TO WIN $500 IN STOCKS OR CRYPTO

Enter your email to also get Benzinga's Ultimate Morning Update AND a free $30 gift card or more!

Further details can be found here: Tesla reportedly cancels cheap car plans, Elon Musk denies the story

Tesla shares were trading 3.6% lower at $164.88 at the time of publication on Friday.

Redditor warns about Tesla's growth rate

A recent Reddit post by user pravchaw on r/ValueInvesting raised concerns about Tesla stock's declining growth trajectory and high price-to-earnings (P/E) ratio. A comparison with Toyota Motor Corp (NYSE:TM) highlighted significant differences.

Pursue symbol Current price Market Cap ($M) P/E ratio without NRI Operating margin %
General Motors Co GM $43.68 50,425.65 5.69 5.41
Toyota Motor Corp TM $239.16 322,263.32 10.56 11.13
Tesla Inc TSLA $171.22 545,283.89 59.45 9.19
Ford Motor Co F $13.21 52,491.7 6.54 3.1

The Redditor scrutinized Tesla stock for declining growth and a high price-to-earnings (P/E) ratio. In comparison, Toyota (NYSE:TM) has higher operating margins but a lower P/E ratio, reflecting a more stable financial position.

Key insights into Tesla stock from the Reddit post

  • Tesla's P/E ratio is 59.45, significantly higher than Toyota's 10.56.
  • Despite Tesla's lower operating margin compared to Toyota, its market capitalization exceeds Toyota's by a wide margin.


FREE REPORT: How to Learn Options Trading Quickly

In this special report, you'll learn the four best options trading strategies, how to stay safe as a complete beginner, a 411% trade case study, and how to access two new potentially profitable options trades starting today.Request your free report here.


Financial performance and current challenges At Tesla

Tesla's automotive gross margins have fallen due to aggressive price cuts and the global chip shortage crisis. For the first time since 2020, the company recorded a decline in its vehicle deliveries in the first quarter compared to the same period last year. Production disruptions due to various factors, including the Red Sea conflict and factory closures, have further impacted Tesla's performance.

Technical data Indicates a sharp bearish trend for Tesla stock

Tesla's stock price is below its short-term and long-term moving averages, indicating a sharp bearish trend.

Chart: Benzinga Pro

Several technical indicators, including the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), suggest bearish sentiment towards Tesla stock.

Chart: Benzinga Pro

Tesla stock is facing significant headwinds, including slowing growth, production issues and negative technical indicators. Investors should carefully consider these factors before making investment decisions in Tesla.

Read more: Is Tesla offering $7,000 off the Model Y? Investor says: “Nothing has changed recently”

Image generated with artificial intelligence using Midjourney.


Crypto whales are increasing – are you too?

New research shows the biggest crypto buyers are back. And this time? They could hold on to the possibility of Bitcoin breaking $100,000 in 2024. You don't want to miss out on the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what's going on and what you should buy… Get access to Benzinga's best crypto research and investing for just $1.


© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.