Elon Musk predicts Tesla will surpass Apple, Microsoft, Nvidia, Amazon, Alphabet, but stock may decline
From Nasdaq: 2025-03-09 05:17:00
Tesla (NASDAQ: TSLA) stock surged 63% in 2024, reaching a new high after President Trump’s election win. CEO Elon Musk predicts Tesla could surpass the combined value of Apple, Microsoft, Nvidia, Amazon, and Alphabet. However, Tesla stock has since dropped 44%, facing challenges in maintaining its valuation due to declining sales.
Despite Tesla’s focus on autonomous driving and humanoid robotics, 79% of its revenue still comes from selling electric vehicles. Sales in key markets like Europe have plummeted, with competition from companies like BYD impacting market share. Analysts believe Tesla’s future success hinges on its autonomous driving and robotics ventures.
Tesla’s earnings per share dropped 53% in 2024, leading to a high price-to-earnings ratio of 128.6. The company’s premium valuation is increasingly difficult to justify, especially with shrinking EV sales and delayed production of new products like the Cybercab and Optimus robot. Tesla may face further declines in stock value in the coming year.
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Read more at Nasdaq: Elon Musk Thinks Tesla Will Become the World’s Most Valuable Company. I Predict Its Stock Will Decline by 50% (or More) Instead.
